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Tests of Income Pooling on Household Budget Data: The Australian Evidence

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  • Lancaster, Geoffrey
  • Ray, Ranjan

Abstract

The unitary household model implies pooling of all individual incomes. This study distinguishes between various types of income pooling and tests them on Australian household income/expenditure data. The tests recognise the endogeneity of both earned and unearned income and are performed using a 3 SLS estimation procedure that allows feedback between the various equations. The results support income pooling for some items, though not for others. Moreover, income pooling across gender seems much less likely for old people than for the younger individuals. The study, also, provides evidence on the interaction between the various types of income. Copyright 2002 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Australian Economic Papers.

Volume (Year): 41 (2002)
Issue (Month): 1 (March)
Pages: 99-114

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Handle: RePEc:bla:ausecp:v:41:y:2002:i:1:p:99-114

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Cited by:
  1. Leilanie Basilio, 2009. "Deciding Who Works Where – An Analysis of the Distribution of Work within Native and Immigrant Families in Australia," Ruhr Economic Papers 0125, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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