Estimating household resource shares: A shrinkage approach

 

 

 

Collective models identifying resource shares are promising tools to analyze intra-household welfare and poverty. However, their empirical application has proven difficult in practice as authors contend with large standard errors and unstable estimates. This paper uses a prominent framework to show how a common feature of the structure of these models makes the task so difficult and proposes an empirical strategy to stabilize the estimates.

The paper, co-authored with Denni Tommasi, is now published in Economics Letters, 2018. The full paper is available here.

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