Using schooling decisions to estimate the elasticity of marginal utility of consumption?

• 成果类型: Article
• 署名作者: Bergstrom, Katy; Dodds, William
• 署名单位: Tulane University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2023.104948
• 发表日期: 2023
• 关键词: Elasticity of marginal utility of consumption; sufficient statistics; Consumption cost of schooling; Income effect; Price effect

摘要

This paper uses schooling decisions to estimate curvature in utility of consumption in developing countries. We show that the elasticity of marginal utility of consumption (EMUC) can be recovered from three sufficient statistics: (1) the price effect of schooling; (2) the income effect of schooling; and (3) the consumption cost of sending a child to school. We estimate the consumption cost of schooling using variation from the randomized roll-out of Progresa, a conditional cash transfer program in rural Mexico. Using estimates of income and price effects in the Progresa setting from Bergstrom and Dodds (2021), we estimate the EMUC at 1.6.