Having displayed how bundles are ranked, we can now move on to direct estimation of the indifference curve. We first present direct estimates from equation 4 in panel A of table 3. We display estimates from the unweighted and weighted data in columns 1 and 2, respectively.

Table 3.

Panel A: Probit Coefficient Estimates . | ||
---|---|---|

. | Unweighted . | Weighted . |

∆ ln(income) | 4.280^{***} | 4.340^{***} |

(0.206) | (0.262) | |

∆ ln(Inc. Inequality) | −1.943^{***} | −1.733^{***} |

(0.159) | (0.206) | |

∆ ln(Educ.) | 1.061^{***} | 1.030^{***} |

(0.056) | (0.064) | |

∆ ln(Educ. Inequality) | −0.968^{***} | −0.814^{***} |

(0.157) | (0.198) | |

Panel B: Marginal Rate of Substitution | ||

MRS_{Inequality Inc.,Income} | −1.986^{***} | −1.747^{***} |

(0.170) | (0.217) | |

MRS_{Inequality
HE,Income} | −0.176^{***} | −0.146^{***} |

(0.029) | (0.035) | |

MRS_{Avg. HE enrollment,Income} | 0.372^{***} | 0.356^{***} |

(0.022) | (0.026) | |

MRS_{Inequality Inc.,Inequality HE} | 11.294^{***} | 11.980^{***} |

(1.910) | (3.003) | |

N | 3,996 | 3,996 |

Panel A: Probit Coefficient Estimates . | ||
---|---|---|

. | Unweighted . | Weighted . |

∆ ln(income) | 4.280^{***} | 4.340^{***} |

(0.206) | (0.262) | |

∆ ln(Inc. Inequality) | −1.943^{***} | −1.733^{***} |

(0.159) | (0.206) | |

∆ ln(Educ.) | 1.061^{***} | 1.030^{***} |

(0.056) | (0.064) | |

∆ ln(Educ. Inequality) | −0.968^{***} | −0.814^{***} |

(0.157) | (0.198) | |

Panel B: Marginal Rate of Substitution | ||

MRS_{Inequality Inc.,Income} | −1.986^{***} | −1.747^{***} |

(0.170) | (0.217) | |

MRS_{Inequality
HE,Income} | −0.176^{***} | −0.146^{***} |

(0.029) | (0.035) | |

MRS_{Avg. HE enrollment,Income} | 0.372^{***} | 0.356^{***} |

(0.022) | (0.026) | |

MRS_{Inequality Inc.,Inequality HE} | 11.294^{***} | 11.980^{***} |

(1.910) | (3.003) | |

N | 3,996 | 3,996 |

*Notes:* Standard errors clustered by respondent in parentheses. MRS measured at the mean values. Probit coefficients based on equation 4. MRS estimates based on equation 5. Weighted estimates based on joint
distributions of adult education and political affiliation using raking method of Deville, Särndal, and Sautory (1993) and implemented by Kolenikov (2017). HE = higher education.

^{***}*p* < 0.01.

This site uses cookies. By continuing to use our website, you are agreeing to our privacy policy.