The share of household resources devoted to children is hard to identify because consumption is measured at the household level and goods can be shared. Using semiparametric restrictions on individual preferences within a collective model, we identify how total household resources are divided up among household members by observing how each family member's expenditures on a single private good like clothing vary with income and family size. Using data from Malawi we show how resources devoted to wives and children vary by family size and structure, and we find that standard poverty indices understate the incidence of child poverty. (JEL I31, I32, J12, J13, O12, O15)
We invent Implicit Marshallian Demands, a new type of demand function that combines desirable features of Hicksian and Marshallian demand functions. We propose and estimate the Exact Af ne Stone Index (EASI) Implicit Marshallian Demand system. Like the Almost Ideal Demand (AID) system, EASI budget shares are linear in parameters given real expenditures. However, unlike the AID, EASI demands can have any rank and its Engel curves can be polynomials or splines of any order in real expenditures. EASI error terms equal random utility parameters to account for unobserved preference heterogeneity. EASI demand functions can be estimated using GMM or three stage least squares, and, like AID, an approximate EASI model can be estimated by linear regression. JEL Codes: D11, D12, C31, C33, C51
Abstract. The literature on ethnically based earnings differentials in Canada has focused on differences either between whites and visible minorities or between particular ethnic groups. In this paper we examine both earnings differentials between whites and visible minorities, and earnings differentials within the white and visible-minority groupings. Among both men and women we þnd substantial earnings differentials both between and within the white and visible-minority groupings. Differentials between whites and visible minorities suggest that the visible-minority category is a useful indicator of economic discrimination. Differentials within these groupings, however, suggest that it is only a rough indicator.
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