Abstract
This paper develops a non-parametric collective random utility model with a continuous choice of consumption and sharing. We allow for a heterogeneous population by introducing unobserved distribution factors and preferences that are non-separable in the stochastic household choice system. We provide necessary and sufficient conditions for invertibility with respect to the vector of unobserved heterogeneity. Further, we show non-parametric identification of each individual’s idiosyncratic preferences and Pareto weights from the distribution of observed choices. Based on this result we develop a non-parametric two-step estimation procedure and estimate individual counterfactuals in a collective labour supply model for households with children using the LISS panel.
| Original language | English |
|---|---|
| Pages (from-to) | 301-326 |
| Number of pages | 25 |
| Journal | Journal of Econometrics |
| Volume | 234 |
| Issue number | 1 |
| Early online date | 19 Feb 2022 |
| DOIs | |
| Publication status | Published - 1 May 2023 |
Bibliographical note
Funding Information:The author gratefully acknowledges financial support from the Netherlands Organisation for Scientific Research (NWO) through a TOP Grant. The author would also like to thank Arthur van Soest, Pavel Cizek, Stefan Hoderlein, Arthur Lewbel, Martin Browning, Jaap Abbring, Laurens Cherchye, Frederic Vermeulen, and Richard Spady for their helpful comments. Previous versions of this paper circulated with the title ?Nonparametric Identification and Estimation of the Sharing Rule in Collective Models with Unobserved Heterogeneity?.
Publisher Copyright:
© 2022 Elsevier B.V.