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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.
Cobb Douglas Results, Main Effects, and Marginal Rate of Substitution (MRS)
Panel A: Probit Coefficient Estimates
UnweightedWeighted
∆ 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 
MRSInequality Inc.,Income −1.986*** −1.747*** 
 (0.170) (0.217) 
MRSInequality HE,Income −0.176*** −0.146*** 
 (0.029) (0.035) 
MRSAvg. HE enrollment,Income 0.372*** 0.356*** 
 (0.022) (0.026) 
MRSInequality Inc.,Inequality HE 11.294*** 11.980*** 
 (1.910) (3.003) 
N 3,996 3,996 
Panel A: Probit Coefficient Estimates
UnweightedWeighted
∆ 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 
MRSInequality Inc.,Income −1.986*** −1.747*** 
 (0.170) (0.217) 
MRSInequality HE,Income −0.176*** −0.146*** 
 (0.029) (0.035) 
MRSAvg. HE enrollment,Income 0.372*** 0.356*** 
 (0.022) (0.026) 
MRSInequality 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.

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