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Estimating Engel curves: A new way to improve the SILC-HBS matching process

Author

Listed:
  • Julio López-Laborda
  • Carmen Marín-González
  • Jorge Onrubia

Abstract

There are several ways to match SILC-HBS surveys, with the most common technique involving the estimation of Engel curves using Ordinary Least Squares in logs with HBS data to impute household expenditure in the income dataset (SILC). The estimation in logs has certain advantages, as it can deal with skewness in data and reduce heteroskedasticity. However, the model needs to be corrected with a smearing estimate to retransform the results into levels. The presence of intrinsic heteroskedasticity in household expenditure therefore calls for another technique, as the smearing estimate produces a bias. Generalized Linear Models (GLMs) are presented as the best option.

Suggested Citation

  • Julio López-Laborda & Carmen Marín-González & Jorge Onrubia, 2017. "Estimating Engel curves: A new way to improve the SILC-HBS matching process," Working Papers 2017-15, FEDEA.
    • Handle: RePEc:fda:fdaddt:2017-15
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    Cited by:

    1. Lucía Gorjón García & Sara de la Rica & Antonio Villar, 2019. "The social cost of unemployment in Spain: who are the losers?," Working Papers 19.08, Universidad Pablo de Olavide, Department of Economics.
    2. Julio López Laborda & Carmen Marín González & Jorge Onrubia, 2019. "Observatorio sobre el reparto de los impuestos y las prestaciones monetarias entre los hogares españoles. Cuarto informe: 2016 y 2017," Studies on the Spanish Economy eee2019-36, FEDEA.
    3. Lucía Gorjón & Sara de la Rica & Antonio Villar, 2018. "The social cost of unemployment: the Spanish labour market from a social welfare approach," Studies on the Spanish Economy eee2018-22, FEDEA.
    4. Julio López Laborda & Carmen Marín González & Jorge Onrubia, 2018. "Tipo reducido, superreducido y exenciones en el IVA: una estimación de sus efectos recaudatorios y distributivos a partir de las encuestas de hogares," Studies on the Spanish Economy eee2018-23, FEDEA.
    5. Lucía Gorjón & Sara Rica & Antonio Villar, 2020. "The Cost of Unemployment from a Social Welfare Approach: The Case of Spain and Its Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(3), pages 955-976, August.

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