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Semi-Nonparametric IV Estimation of Shape-Invariant Engel Curves

Semi-Nonparametric IV Estimation of Shape-Invariant Engel Curves

This paper studies a shape-invariant Engel curve system with endogenous total expenditure, in which the shape-invariant specification involves a common shift parameter for each demographic group in a pooled system of nonparametric Engel curves. We focus on the identification and estimation of both the nonparametric shapes of the Engel curves …