Journal Article

Estimating household resource shares: A shrinkage approach

Date: 07 March 2018
Publisher: Elsevier
JEL classification: D13, D11, D12, C31, I32
DOI: 10.1016/j.econlet.2017.11.030

Collective models identifying resource shares are promising tools to analyze intra-household welfare and poverty. However, their empirical application has proven difficult in practice as authors contend with large standard errors and unstable estimates. This paper uses a prominent framework to show how a common feature of the structure of these models makes the task so difficult and proposes an empirical strategy to stabilize the estimates.