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Ordinary Least Squares Estimation of the Intrahousehold Distribution of Expenditure

Lechene, V; Pendakur, K; Wolf, A; (2022) Ordinary Least Squares Estimation of the Intrahousehold Distribution of Expenditure. Journal of Political Economy , 130 (3) pp. 681-731. 10.1086/717892. Green open access

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Abstract

We provide a method to estimate resource shares—the fraction of total household expenditure allocated to each household member—using linear (e.g., ordinary least squares) estimation of Engel curves. The method is a linear reframing of the 2013 nonlinear model of Dunbar, Lewbel, and Pendakur, extended to allow single-parent and other complex households, scale economies in assignable goods, and complementarities between nonassignable goods and supplemented with a linear identification test. We apply the model to data from 12 countries and investigate resource shares, gender gaps, and poverty at the individual level. We reject equal sharing and find large gender gaps in resource shares, and consequently in poverty rates, in some countries.

Type: Article
Title: Ordinary Least Squares Estimation of the Intrahousehold Distribution of Expenditure
Open access status: An open access version is available from UCL Discovery
DOI: 10.1086/717892
Publisher version: https://doi.org/10.1086/717892
Language: English
Additional information: This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10138344
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