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Identification of Random Resource Shares in Collective Households Without Preference Similarity Restrictions

Author

Listed:
  • Geoffrey R. Dunbar
  • Arthur Lewbel
  • Krishna Pendakur
Abstract
Resource shares, defined as the fraction of total household spending going to each person in a household, are important for assessing individual material well-being, inequality and poverty. They are difficult to identify because consumption is measured typically at the household level, and many goods are jointly consumed, so that individual-level consumption in multi-person households is not directly observed. We consider random resource shares, which vary across observationally identical households. We provide theorems that identify the distribution of random resource shares across households, including children’s shares. We also provide a new method of identifying the level of fixed or random resource shares that does not require previously needed preference similarity restrictions or marriage market assumptions. Our results can be applied to data with or without price variation. We apply our results to households in Malawi, estimating the distributions of child and female poverty across households.

Suggested Citation

  • Geoffrey R. Dunbar & Arthur Lewbel & Krishna Pendakur, 2017. "Identification of Random Resource Shares in Collective Households Without Preference Similarity Restrictions," Staff Working Papers 17-45, Bank of Canada.
    • Handle: RePEc:bca:bocawp:17-45
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    References listed on IDEAS

    as
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    22. Geoffrey R. Dunbar & Arthur Lewbel & Krishna Pendakur, 2013. "Children's Resources in Collective Households: Identification, Estimation, and an Application to Child Poverty in Malawi," American Economic Review, American Economic Association, vol. 103(1), pages 438-471, February.
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    Cited by:

    1. Stanislaw Maciej Kot, 2023. "Equivalence scales for continuous distributions of expenditure," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(1), pages 185-218, March.
    2. Botosaru, Irene & Muris, Chris & Pendakur, Krishna, 2023. "Identification of time-varying transformation models with fixed effects, with an application to unobserved heterogeneity in resource shares," Journal of Econometrics, Elsevier, vol. 232(2), pages 576-597.
    3. Krishna Pendakur, 2018. "Welfare analysis when people are different," Canadian Journal of Economics, Canadian Economics Association, vol. 51(2), pages 321-360, May.
    4. Anderson Vil, "undated". "Children Costs in a One-adult Household: Empirical Evidence from the UK," THEMA Working Papers 2024-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    5. Ulugbek Aminjonov & Olivier Bargain & Maira Colacce & Luca Tiberti, 2022. "Culture, Intra-household Distribution and Individual Poverty," Working Papers - Economics wp2022_21.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    6. Hubner, Stefan, 2023. "Identification of unobserved distribution factors and preferences in the collective household model," Journal of Econometrics, Elsevier, vol. 234(1), pages 301-326.
    7. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    8. Tommasi, Denni, 2019. "Control of resources, bargaining power and the demand of food: Evidence from PROGRESA," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 265-286.
    9. Klein, Matthew J. & Barham, Bradford L. & Wu, Yuexuan, 2019. "Gender Equality in the Family Can Reduce the Malaria Burden in Malawi," Staff Paper Series 594, University of Wisconsin, Agricultural and Applied Economics.
    10. Klein, Matthew J. & Barham, Bradford L., 2018. "Point Estimates of Household Bargaining Power Using Outside Options," Staff Paper Series 590, University of Wisconsin, Agricultural and Applied Economics.
    11. Lucia Mangiavacchi & Luca Piccoli, 2022. "Gender Inequalities Among Adults and Children: Exposure to Migration and the Evolution of Social Norms in Albania," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 546-564, September.
    12. Calvi, Rossella & Keskar, Ajinkya, 2021. "Dowries, resource allocation, and poverty," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 268-303.

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    More about this item

    Keywords

    Domestic demand and components; Econometric and statistical methods;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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