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Estimation of unit values in household expenditure surveys without quantity information

Author

Listed:
  • Martina Menon

    () (University of Verona)

  • Federico Perali

    () (University of Verona)

  • Nicola Tommasi

    () (Interdepartmental Centre of Economic Documentation, University of Verona)

Abstract

In this article, we present the pseudounit command, which estimates pseudounit values in cross-sections of household expenditure surveys without quan- tity information. Household surveys traditionally record only expenditure informa- tion. The lack of information about quantities purchased precludes the possibility of deriving household-specific unit values. We use a theoretical result developed by Lewbel (1989, Review of Economic Studies 56: 311–316) to construct pseudounit values by first reproducing cross-sectional price variation, then adding this vari- ability to the aggregate price indexes published by national statistical institutes. We illustrate the method with an example that uses a time series of cross-sections of Italian household budgets.

Suggested Citation

  • Martina Menon & Federico Perali & Nicola Tommasi, 2017. "Estimation of unit values in household expenditure surveys without quantity information," Stata Journal, StataCorp LP, vol. 17(1), pages 222-239, March.
  • Handle: RePEc:tsj:stataj:v:17:y:2017:i:1:p:222-239
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    Citations

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    Cited by:

    1. Jean-paul Chavas & Martina Menon & Federico Perali, 2014. "The Sharing Rule: Where Is It?," Working Papers 27/2014, University of Verona, Department of Economics.
    2. Martina Menon & Federico Perali & Ranjan Ray & Nicola Tommasi, 2019. "The Tale of the Two Italies: Regional Price Parities Accounting for Differences in the Quality of Services," Working Papers 20/2019, University of Verona, Department of Economics.
    3. Chavas, Jean-Paul & Menon, Martina & Pagani, Elisa & Perali, Federico, 2018. "Collective household welfare and intra-household inequality," Theoretical Economics, Econometric Society, vol. 13(2), May.
    4. Echeverría, Lucía & Menon, Martina & Perali, Federico & Berges, Miriam, 2019. "Intra-household inequality and child welfare in Argentina," Nülan. Deposited Documents 3051, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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