Semiparametric estimation and consumer demand

Blundell, Richard; Duncan, Alan; Pendakur, Krishna

doi:10.1002/(sici)1099-1255(1998090)13:5<435::aid-jae506>3.0.co;2-k

Cited by 178 publications

(127 citation statements)

References 26 publications

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“…We use here the HM4SE 4 which is an improved version of the Härdle and Marron (1990) estimator. 5 The estimator is implemented as follows: 2. Estimate the parameters a j given c by least squares, i.e.…”

Section: Econometric Modelmentioning

confidence: 99%

“…This paper presents a comprehensive empirical study of the semiparametric estimation of consumption based equivalence scales. Equivalence scales for Germany are estimated by applying Wilke's (2003) estimator for the extended partially linear model suggested by Blundell et al (1998) to the most recent version of the German income and consumption survey data (EVS 1998). For estimation purposes the data is segmented into homogenous groups of households conditional on employment status of the household head, the west/east issue and on whether the household owns property or not.…”

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confidence: 98%

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Semi‐parametric estimation of consumption‐based equivalence scales: the case of Germany

Wilke

2006

J of Applied Econometrics

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Die Discussion Papers dienen einer möglichst schnellen Verbreitung von neueren Forschungsarbeiten des ZEW. Die Beiträge liegen in alleiniger Verantwortung der Autoren und stellen nicht notwendigerweise die Meinung des ZEW dar.Discussion Papers are intended to make results of ZEW research promptly available to other economists in order to encourage discussion and suggestions for revisions. The authors are solely responsible for the contents which do not necessarily represent the opinion of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp0453.pdf Non-technical SummaryRecent reforms of the social security system in Germany will almost certainly lead to the merger of social benefits (Sozialhilfe) and unemployment assistance (Arbeitslosenhilfe) by the year 2005. When this reform takes effect, up to 1.7 million individuals and their families will obtain new needs-oriented social benefits (Arbeitslosengeld II) in addition to the over 2.3 million employable individuals currently receiving similar social benefits. In contrast to the current benefit system, the system of new social benefits is intended to provide stronger incentives to the unemployed to search for and accept new jobs (Hartz, 2002). However, gross need for social benefits will continue to be calculated on the basis of equivalence scales which determine the equivalent income between different demographic groups of households such that both types of households can achieve the same standard of living. The design of the equivalence scale scheme will therefore essentially drive the incentives for job seekers. This means that, finding appropriate values for the equivalence scales will assume even greater importance in the future. It is difficult to infer policy recommendations from the results because of the large standard errors of the estimates and because of some degree of theoretical arbitrariness involved in the underlying modelling approach. However, the estimations provide some indications that on average the costs for additional persons in a household are at least covered by the standard rates of German social benefits. In the light of recent decisions of the Federal Constitutional Court (Bundesverfassungsgericht) concerning the costs of children and growing discussion of demographic transitions in Germany, it is not apparent from the estimation results that equivalence scales need to be increased for households with children. Semiparametric Estimation of Consumption BasedEquivalence Scales -The Case of Germany

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Section: Econometric Modelmentioning

confidence: 99%

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confidence: 98%

Semi‐parametric estimation of consumption‐based equivalence scales: the case of Germany

Wilke

2006

J of Applied Econometrics

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“…The two main approaches proposed in the literature in additive regression models is nonparametric IV (Ai and Chen, 2003;Hall and Horowitz, 2005;Newey and Powell, 2003) and control functions (Newey, Powell and Vella, 1998). Both these methods have been applied in the empirical analysis of Engel curves with additive errors (Blundell, Chen andKristensen, 2003, andBlundell, Duncan andPendakur, 1998 respectively). These two approaches have recently been employed in the estimation of quantile models : Chernozhukov, Imbens and Newey (2007) and Chen and Pouzo (2008a,b) develop nonparametric IV methods for quantile models, while Imbens and Newey (2007) consider control function methods.…”

Section: Conclusion and Extensionsmentioning

confidence: 99%

Bounding quantile demand functions using revealed preference inequalities

Blundell

Kristensen

Matzkin³

2014

Journal of Econometrics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper develops a new technique for the estimation of consumer demand models with unobserved heterogeneity subject to revealed preference inequality restrictions. Particular attention is given to nonseparable heterogeneity. The inequality restrictions are used to identify bounds on quantile demand functions. A nonparametric estimator for these bounds is developed and asymptotic properties are derived. An empirical application using data from the U.K. Family Expenditure Survey illustrates the usefulness of the methods by deriving bounds and con…dence sets for estimated quantile demand functions. Terms of use: Documents in EconStor may JEL: C20, D12

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“…However, this creates additional problems for the instrumenting approach due to the presence of non-linear terms in the demand system. The alternative strategy adopted in the literature is to follow a control function approach as proposed by Blundell et al (1998).…”

Section: Analysis Of the Outputs: Child Developmentmentioning

confidence: 99%

How Cash Transfers Improve Child Development

Tommasi

2015

SSRN Journal

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This paper investigates the mechanism(s) through which a large exogenous shock in income affects the investment parents make in child development. The identification strategy exploits the random assignment of a conditional cash transfer program in rural Nicaragua whose objective was to benefit households with very young children. Payments were allocated to mothers who were also subject to repeated information on the importance of varied diets, health and education matters.We show that the cash transfers improved child development via a strong income effect and a change in knowledge toward child rearing practices. However, both mechanisms were effective only in those households where the mother was likely to be already powerful at the baseline. In light of the theoretical model that guides the empirical analysis, we can interpret these results as the mother having a larger marginal willingness to pay for children. However, this difference in preferences starts to play a role only when her decision power is strong, because in this case she is more capable of using at best the additional resources that are made at her disposal.JEL Codes: D13, I15, J13, J16, O15

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Semiparametric estimation and consumer demand

Cited by 178 publications

References 26 publications

Semi‐parametric estimation of consumption‐based equivalence scales: the case of Germany

Semi‐parametric estimation of consumption‐based equivalence scales: the case of Germany

Bounding quantile demand functions using revealed preference inequalities

How Cash Transfers Improve Child Development

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