Revolutionizing Household Spending and Financial Risk Management with Nonparametric Methods
This article explores different ways to estimate economic models without making strict assumptions. It looks at how households share expenses and make decisions, and how financial risks can be predicted. The researchers found ways to identify hidden factors in these models without needing specific details. They showed that it's possible to study individual welfare in diverse groups, test economic theories using real household data, and predict financial risks based on past trends.