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Household decision making in rural China: Using experiments to estimate the influences of spouses

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  • Carlsson, Fredrik
  • He, Haoran
  • Martinsson, Peter
  • Qin, Ping
  • Sutter, Matthias

Abstract

Many economic decisions are made jointly within households. Running an experiment on intertemporal choice, we investigate the relative influence of spouses on joint household decisions. We let each spouse first decide individually and then jointly with the other spouse. We propose the use of a random parameter probit model to measure the relative influence of spouses on joint decisions. We find that joint choices are in between husbands’ and wives’ choices with respect to impatience, indicating that both spouses have an influence on joint decisions. However, we estimate that in 99% of households husbands have a stronger influence than wives.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 84 (2012)
Issue (Month): 2 ()
Pages: 525-536

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Handle: RePEc:eee:jeborg:v:84:y:2012:i:2:p:525-536

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Keywords: Household decision making; Spouses; Relative influence; Random parameter model; Field experiment; Time preferences;

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Cited by:
  1. Munro, Alistair & Verschoor, Arjan & Dubey, Amaresh, 2013. "Does working with spouses make teams more productive? A field experiment in India using NREGA," Economics Letters, Elsevier, vol. 118(3), pages 506-508.
  2. Holden, Stein & Bezu, Sosina, 2014. "Are Wives less Selfish than their Husbands? Evidence from Hawk-Dove Game Field Experiments," CLTS Working Papers 3/14, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  3. Filippin, Antonio & Crosetto, Paolo, 2014. "A Reconsideration of Gender Differences in Risk Attitudes," IZA Discussion Papers 8184, Institute for the Study of Labor (IZA).
  4. Mohammed Abdellaoui & Olivier l'Haridon & Corina Paraschiv, 2013. "Do Couples Discount Future Consequences Less than Individuals?," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201320, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  5. Laurent Denant-Boèmont & Enrico Diecidue & Olivier L'Haridon, 2013. "Patience and Time Consistency in Collective Decisions," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201329, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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