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Ordinary Least Squares Estimation of the Intrahousehold Distribution of Expenditure

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  • Valérie Lechene
  • Krishna Pendakur
  • Alex Wolf

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.

Suggested Citation

  • Valérie Lechene & Krishna Pendakur & Alex Wolf, 2022. "Ordinary Least Squares Estimation of the Intrahousehold Distribution of Expenditure," Journal of Political Economy, University of Chicago Press, vol. 130(3), pages 681-731.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/717892
    DOI: 10.1086/717892
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    Citations

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    Cited by:

    1. Xiangdan Piao, 2023. "Intra-Household Income Management and Couple’s Relative Sharing of Income and Environment Sustainability in Japan," Sustainability, MDPI, vol. 15(7), pages 1-17, April.
    2. Sutirtha Bandyopadhyay & Bipasha Maity, 2023. "Socio-Economic Identity and Intra-Household Distribution of Consumption in India: A Structural Approach," Working Papers 100, Ashoka University, Department of Economics.
    3. Shirleen Manzur & Krishna Pendakur, 2023. "Labeling vs Targeting: How did the Canada Child Benefit affect household bargaining and preferences?," Discussion Papers dp23-01, Department of Economics, Simon Fraser University.
    4. Luca Piccoli, 2023. "Female poverty and intrahousehold inequality in transition economies," IZA World of Labor, Institute of Labor Economics (IZA), pages 353-353, February.
    5. Zhi Cao & Arthur Lewbel & Wenchao Li & Junjian Yi, 2024. "Collective Behavior with Information Asymmetry," Boston College Working Papers in Economics 1070, Boston College Department of Economics, revised 31 Aug 2024.
    6. Jose, Anu, 2024. "Income shocks and intrahousehold resource allocation: evidence from rural Ethiopia," MPRA Paper 121873, University Library of Munich, Germany.
    7. NIKIEMA, Relwendé Apollinaire, 2024. "Intrahousehold Consumption Inequality, Economies of Scale, Indifference Scales, and Family Structure," IDE Discussion Papers 915, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Arthur Lewbel & Krishna Pendakur, 2024. "Estimating a model of inefficient cooperation and consumption in collective households," Review of Economics of the Household, Springer, vol. 22(3), pages 865-907, September.
    9. Najeeb, Fatima, 2024. "Deepening Inequalities? Evidence from Floods in Bangladesh," 2024 Annual Meeting, July 28-30, New Orleans, LA 343567, Agricultural and Applied Economics Association.
    10. Beltramo, Theresa P. & Calvi, Rossella & De Giorgi, Giacomo & Sarr, Ibrahima, 2023. "Child poverty among refugees," World Development, Elsevier, vol. 171(C).
    11. Pierre-André Chiappori & Costas Meghir & Yoko Okuyama, 2024. "Intrahousehold welfare: Theory and application to Japanese data," IFS Working Papers W24/30, Institute for Fiscal Studies.
    12. Wenhao Xue & Xinyao Li & Zhe Yang & Jing Wei, 2022. "Are House Prices Affected by PM 2.5 Pollution? Evidence from Beijing, China," IJERPH, MDPI, vol. 19(14), pages 1-17, July.

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