Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241901 
Year of Publication: 
2020
Series/Report no.: 
cemmap working paper No. CWP26/20
Publisher: 
Centre for Microdata Methods and Practice (cemmap), London
Abstract: 
We provide a new full-commitment intertemporal collective household model to estimate resource shares, defined as the fraction of household expenditure enjoyed by household members. Our model implies nonlinear time-varying household quantity demand functions that depend on fixed effects. We provide new econometric results showing identification of a large class of models that includes our household model. We cover fixed-T panel models where the response variable is an unknown monotonic function of a linear latent variable with fixed effects, regressors, and a nonparametric error term. The function may be weakly monotonic and time-varying, and the fixed effects are unrestricted. We identify the structural parameters and features of the distribution of fixed effects. In our household model, these correspond to features of the distribution of resource shares. Using Bangladeshi data, we show: women's resource shares decline with household budgets; and, half the variation in women's resource shares is due to unobserved heterogeneity.
Subjects: 
panel data
fixed effects
incidental parameter
time-varyingtransformation function
collective household
full commitment
resource shares
gender inequality
JEL: 
C14
C23
C41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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