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Comparative Advantage in the Household: Should One Person Specialize in a Household’s Financial Matters?

Author

Listed:
  • Blain Pearson

    (Kansas State University, Manhattan)

  • Thomas Korankye

    (The University of Arizona)

  • Hossein Salehi

    (California Lutheran University)

Abstract

This study examines if households experience utility gains by selecting one of its members to specialize in its financial management. Utilizing data that are collected from the Health and Retirement Study, a variable measuring households’ level of financial specialization (HFS) is first constructed. The HFS variable is examined for its association with household utility, measured in this study as financial satisfaction, income satisfaction, and life satisfaction. The evidence provided strongly indicates that a household that selects one of its members to specialize in its financial management experiences utility gains.

Suggested Citation

  • Blain Pearson & Thomas Korankye & Hossein Salehi, 2023. "Comparative Advantage in the Household: Should One Person Specialize in a Household’s Financial Matters?," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 114-124, March.
    • Handle: RePEc:kap:jfamec:v:44:y:2023:i:1:d:10.1007_s10834-021-09807-y
    DOI: 10.1007/s10834-021-09807-y
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial satisfaction; Household economics; Household finances; Household specialization;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D16 - Microeconomics - - Household Behavior - - - Collaborative Consumption

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