Distributional Effects in Household Models: Separate Spheres and Income Pooling
AbstractWe derive distributional effects for a non-cooperative alternative to the unitary model of household behaviour. We consider the Nash equilibria of a voluntary contributions to public goods game. Our main result is that, in general, the two partners either choose to contribute to different public goods or they contribute to at most one common good. The former case corresponds to the separate spheres case of Lundberg and Pollak (1993) . The second outcome yields (local) income pooling. A household will be in different regimes depending on the distribution of income within the household. Any bargaining model with this non-cooperative case as a breakdown point will inherit the local income pooling. We conclude that targeting benefits such as child benefits to one household member may not always have an effect on outcomes. Copyright � The Author(s). Journal compilation � Royal Economic Society 2009.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 120 (2010)
Issue (Month): 545 (06)
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Other versions of this item:
- Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2005. "Distributional Effects in Household Models: Separate Spheres and Income Pooling," CAM Working Papers 2005-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Martin Browning & Pierre André Chiappori & Valérie Lechene, 2007. "Distributional effects in household models: separate spheres and income pooling," IFS Working Papers W07/03, Institute for Fiscal Studies.
- Martin Browning & Valerie Lechene & Pierre-Andre Chiappori, 2006. "Distributional effects in household models: separate spheres and income pooling," Economics Series Working Papers 293, University of Oxford, Department of Economics.
- D10 - Microeconomics - - Household Behavior - - - General
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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