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DUVM: Stata module to estimate Deaton's unit-value model

Author

Listed:
  • Abdelkrim Araar

    (Universite Laval
    Partnership for Economic Policy (PEP))

Programming Language

Abstract

duvm estimates the unit-value model of Deaton (1988, 1990, 1997 ch. 5): own -and cross-price elasticities of quantity, expenditure elasticities and quality elasticities for a group of goods, from the budget shares and the unit values that households report, using the spatial variation of prices across clusters. It follows the book, in closed form and in Mata: a within-cluster first stage, a between-cluster second stage with the errors-in-variables correction, the quality correction through the separability parameter, the completion of the system with a composite good and an approximate Slutsky symmetry. Standard errors are linearized from the influence functions of both stages, by cluster or by survey design (svyset), or come from a design bootstrap of both stages. duvm also corrects the unit values for the selection of the buyers (Heckman, the probit in the standard errors), reports the elasticities of the household, of the individual or of the market, and makes the household size optional. duvmdiag and estat diagnostics check the price signal; predict and estat engel give the Engel curves; tables with significance stars can be written to Word, LaTeX, Excel, CSV or Markdown; a dialog box and help examples run from clickable links are included. Option compact reproduces the Stata code published with Deaton (1997). A technical note documents the model, the estimator and the validation of the variance; it is included as an ancillary file (duvm_technical_note.pdf).

Suggested Citation

  • Abdelkrim Araar, 2026. "DUVM: Stata module to estimate Deaton's unit-value model," Statistical Software Components S459916, Boston College Department of Economics.
  • Handle: RePEc:boc:bocode:s459916
    Note: This module should be installed from within Stata by typing "ssc install easi". The module is made available under terms of the MIT license (https://opensource.org/licenses/MIT).
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    File URL: http://fmwww.bc.edu/repec/bocode/d/duvm.ado
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    File URL: http://fmwww.bc.edu/repec/bocode/d/duvmdiag.ado
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