IDEAS home Printed from https://ideas.repec.org/p/sfu/sfudps/dp12-11.html
   My bibliography  Save this paper

On the Expenditure-Dependence of Children's Resource Shares

Author

Listed:

Abstract

Collective household models posit that each household member has access to a fraction of the household budget, called a resource share, which defines the shadow budget faced by a household member. Together with the within-household shadow price vector, the shadow budget determines the material well-being of the household member. In general, it is difficult to identify resource shares from typical household-level consumption data. However, several recent papers have shown that if resource shares do not depend on total household expenditure, then identification of resource shares may proceed from commonly available Engel curve data. Unfortunately, typical datasets do not allow the testing of this restriction. In this paper, we use a novel Italian dataset to establish that children's resource shares do not exhibit much dependence on total household expenditure. Thus, identification of resource shares on the basis of this restriction may be valid.

Suggested Citation

  • Krishna Pendakur & Martina Menon & Federico Perali, 2012. "On the Expenditure-Dependence of Children's Resource Shares," Discussion Papers dp12-11, Department of Economics, Simon Fraser University.
  • Handle: RePEc:sfu:sfudps:dp12-11
    as

    Download full text from publisher

    File URL: http://www.sfu.ca/econ-research/RePEc/sfu/sfudps/dp12-11.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rob Alessie & Thomas F. Crossley & Vincent Hildebrand, 2006. "Estimating a Collective Household Model with Survey Data on Financial Satisfaction," Social and Economic Dimensions of an Aging Population Research Papers 161, McMaster University.
    2. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
    3. Aline Bütikofer & Michael Gerfin, 2017. "The economies of scale of living together and how they are shared: estimates based on a collective household model," Review of Economics of the Household, Springer, vol. 15(2), pages 433-453, June.
    4. Vermeulen, Frederic, 2002. "Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-564, September.
    5. Olivier Bargain & Olivier Donni & Monnet Gbakou, 2010. "The Measurement of Child Costs: Evidence from Ireland," The Economic and Social Review, Economic and Social Studies, vol. 41(1), pages 1-20.
    6. Becker, Gary S, 1981. "Altruism in the Family and Selfishness in the Market Place," Economica, London School of Economics and Political Science, vol. 48(189), pages 1-15, February.
    7. Geoffrey R. Dunbar & Arthur Lewbel & Krishna Pendakur, 2013. "Children's Resources in Collective Households: Identification, Estimation, and an Application to Child Poverty in Malawi," American Economic Review, American Economic Association, vol. 103(1), pages 438-471, February.
    8. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    9. Lewbel, Arthur, 2003. "Calculating compensation in cases of wrongful death," Journal of Econometrics, Elsevier, vol. 113(1), pages 115-128, March.
    10. Lewbel, Arthur & Pendakur, Krishna, 2008. "Estimation of collective household models with Engel curves," Journal of Econometrics, Elsevier, vol. 147(2), pages 350-358, December.
    11. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    12. Bargain, Olivier & Donni, Olivier & Magejo, Prudence, 2011. "Intrahousehold Distribution and Child Poverty: Theory and Evidence from Côte d’Ivoire," IZA Discussion Papers 6029, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laurens Cherchye & Bram De Rock & Arthur Lewbel & Frederic Vermeulen, 2015. "Sharing Rule Identification for General Collective Consumption Models," Econometrica, Econometric Society, vol. 83(5), pages 2001-2041, September.
    2. Cipriani, Giam Pietro & Pascucci, Francesco, 2020. "Pension policies in a model with endogenous fertility," Journal of Pension Economics and Finance, Cambridge University Press, vol. 19(1), pages 109-125, January.
    3. Olivier Bargain & Guy Lacroix & Luca Tiberti, 2018. "Validating the collective model of household consumption using direct evidence on sharing," Working Papers PMMA 2018-06, PEP-PMMA.
    4. Denni Tommasi & Alexander Wolf, 2016. "Overcoming Weak Identification in the Estimation of Household Resource Shares," Working Papers ECARES ECARES 2016-12, ULB -- Universite Libre de Bruxelles.
    5. Antonella Caiumi & Federico Perali, 2015. "Who bears the full cost of children? Evidence from a collective demand system," Empirical Economics, Springer, vol. 49(1), pages 33-64, August.
    6. 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.
    7. Tommasi, Denni, 2019. "Control of resources, bargaining power and the demand of food: Evidence from PROGRESA," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 265-286.
    8. Denni Tommasi & Arthur Lewbel & Rossella Calvi, 2017. "LATE with Mismeasured or Misspecified Treatment: An application to Women's Empowerment in India," Working Papers ECARES ECARES 2017-27, ULB -- Universite Libre de Bruxelles.
    9. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 107(C), pages 262-276.
    10. Lucia MANGIAVACCHI & Federico PERALI & Luca Piccoli, 2018. "Intrahousehold Distribution in Migrant-Sending Families," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 84(1), pages 107-148, March.
    11. Hubner, Stefan, 2016. "Topics in nonparametric identification and estimation," Other publications TiSEM 08fce56b-3193-46e0-871b-0, Tilburg University, School of Economics and Management.
    12. Valérie Lechene & Krishna Pendakur & Alexander Wolf, 2019. "OLS estimation of the intra-household distribution of consumption," IFS Working Papers W19/19, Institute for Fiscal Studies.
    13. Wilman J. Iglesias & Alexandre B. Coelho, 2020. "Poverty and inequality within Brazilian households: an application of a collective consumption model," Empirical Economics, Springer, vol. 58(4), pages 1923-1952, April.
    14. Jean-paul Chavas & Martina Menon & Federico Perali, 2014. "The Sharing Rule: Where Is It?," Working Papers 27/2014, University of Verona, Department of Economics.
    15. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    16. Wilman Javier Iglesias Pinedo & Alexandre Bragança Coelho, 2018. "Using A Collective Model To Evaluate Intra-Household Inequality And Individual Poverty In Brazil," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 131, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Martina Menon & Elisa Pagani & Federico Perali, 2016. "A class of individual expenditure functions," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(2), pages 291-305, October.
    18. Tommasi, Denni & Wolf, Alexander, 2018. "Estimating household resource shares: A shrinkage approach," Economics Letters, Elsevier, vol. 163(C), pages 75-78.

    More about this item

    Keywords

    Collective Households; Resource Shares; Sharing Rule; Identification;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • D1 - Microeconomics - - Household Behavior
    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sfu:sfudps:dp12-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Working Paper Coordinator). General contact details of provider: http://edirc.repec.org/data/desfuca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.