Empirical Welfare Analysis with Hedonic Budget Constraints
We analyze demand settings where heterogeneous consumers maximize utility for product attributes subject to a nonlinear budget constraint. We develop nonparametric methods for welfare-analysis of interventions that change the constraint. Two new findings are Roy's identity for smooth, nonlinear budgets, which yields a Partial Differential Equation system, and a Slutsky-like symmetry condition for demand. Under scalar unobserved heterogeneity and single-crossing preferences, the coefficient functions in the PDEs are nonparametrically identified, and under symmetry, lead to path-independent, money-metric welfare. We illustrate our methods with welfare evaluation of a hypothetical change in relationship between property rent and neighborhood school-quality using British microdata.
Code (0)
등록된 구현이 없습니다.
Similar Papers 제목 키워드 기반
Stable and Budget-Feasible Coalition Formation for Clustered Federated Learning: A Hedonic Potential-Game Approach
Clustered federated learning benefits from organizing heterogeneous participants into coalitions that train coalition-specific models, but such clustering is sustainable only if participants prefer their assigned coaliti…
Federated LearningMaximizing Utilitarian and Egalitarian Welfare of Fractional Hedonic Games on Tree-like Graphs
Fractional hedonic games are coalition formation games where a player's utility is determined by the average value they assign to the members of their coalition. These games are a variation of graph hedonic games, which …
Empirical Welfare Maximization with Constraints
Empirical Welfare Maximization (EWM) is a framework that can be used to select welfare program eligibility policies based on data. This paper extends EWM by allowing for uncertainty in estimating the budget needed to imp…
PAC-Bayesian Treatment Allocation Under Budget Constraints
This paper considers the estimation of treatment assignment rules when the policy maker faces a general budget or resource constraint. Utilizing the PAC-Bayesian framework, we propose new treatment assignment rules that …
Generalization BoundsStrategyproof Mechanisms for Additively Separable Hedonic Games and Fractional Hedonic Games
Additively separable hedonic games and fractional hedonic games have received considerable attention. They are coalition forming games of selfish agents based on their mutual preferences. Most of the work in the literatu…