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Identification of Time-Varying Transformation Models with Fixed Effects, with an Application to Unobserved Heterogeneity in Resource Shares

Irene Botosaru, Chris Muris, Krishna Pendakur

arXiv 12 Aug 2020 · Econometrics · publishedJournal of Econometrics (2021) · 27 citations (OpenAlex)

arXiv:2008.05507 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide new results showing identification of a large class of fixed-T panel models, where the response variable is an unknown, weakly monotone, time-varying transformation of a latent linear index of fixed effects, regressors, and an error term drawn from an unknown stationary distribution. Our results identify the transformation, the coefficient on regressors, and features of the distribution of the fixed effects. We then develop a full-commitment intertemporal collective household model, where the implied quantity demand equations are time-varying functions of a linear index. The fixed effects in this index equal logged resource shares, defined as the fractions of household expenditure enjoyed by each household member. Using Bangladeshi data, we show that women's resource shares decline with household budgets and that half of the variation in women's resource shares is due to unobserved household-level heterogeneity.

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88
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Dunbar, G. R., Lewbel, A., and Pendakur, K (2013) Children's resources in collective households: identification, estimation, and an application to child poverty in Malawi self1.000154100%
2Chiappori, P.-A. and Mazzoco, M (2017) Static and intertemporal household decisions1.000123100%
3Browning, M., Chiappori, P. A., and Lewbel, A (2013) Estimating consumption economies of scale, adult equivalence scales, and household bargaining power1.00093100%
4Manski, C. F (1987) Semiparametric analysis of random effects linear models from binary panel data1.00093100%
5Chernozhukov, V., Fernández-Val, I., and Weidner, M (2020) Network and panel quantile effects via distribution regression0.92843100%
6Chamberlain, G (2010) Binary response models for panel data: Identification and information0.87452100%
7Dunbar, G. R., Lewbel, A., and Pendakur, K (2019) Identification of random resource shares in collective households without preference similarity restrictions self0.87452100%
8Chen, S (2010) An integrated maximum score estimator for a generalized censored quantile regression model0.84333100%
9Muris, C (2017) Estimation in the fixed effects ordered logit model self0.84333100%
10Abrevaya, J (1999) Leapfrog estimation of a fixed-effects model with unknown transformation of the dependent variable0.81142100%

Showing the top 10 of 103 scored citations.

Cited by, within the corpus

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Citing paperIntensityMentionsSections
1Identification of time-varying counterfactual parameters in nonlinear panel models0.73732
2Dyadic data with ordered outcome variables0.73732
3Identification and Estimation of Partial Effects in Nonlinear Semiparametric Panel Models0.64422
4Dynamic Ordered Panel Logit Models0.40511
5Identification in Nonlinear Dynamic Panel Models under Partial Stationarity0.40511
6An Adversarial Approach to Identification0.40511
7https://api.hubner.info/api/dl/jmpIt's complicated: A Non–parametric Test of Preference Stability between Singles and Couples0.40511