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Intra-Household Resource Allocation, Consumer Preferences and Commodity Tax Reforms: Australian Evidence

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  • Paul Blacklow
  • Ranjan Ray

Abstract

Empirical analysis of household expenditure behaviour has traditionally ignored the issue of resource allocation between household members, assuming that they have identical or unitary preferences. This paper relaxes that assumption, develops a household sharing rule and proposes intra-household demand systems that are able to identify differences in the preferences of members from conventional data. The resulting price and expenditure elasticities are used to demonstrate that collective demand models suggest different directions for commodity tax reforms to those implied by the traditional unitary model. Copyright 2003. The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 79 (2003)
Issue (Month): 247 (December)
Pages: 425-433

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Handle: RePEc:bla:ecorec:v:79:y:2003:i:247:p:425-433

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Cited by:
  1. Lori J. Curtis & JoAnn Kingston-Riechers, 2010. "Implications of the Introduction of the Goods and Services Tax for Families in Canada," Canadian Public Policy, University of Toronto Press, vol. 36(4), pages 503-520, December.
  2. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany.

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