Distributional Welfare Anaysis for Latent Utility Models (w/ Emerson Melo)

This paper develops a distributional welfare analysis framework for latent utility models with additively separable unobserved heterogeneity. After first establishing a distributional aggregation theorem and extending the Williams-Daly-Zachary (WDZ) theorem, we discuss our framework within the context of compensated variation and extend our results to account for choice set modifications.