Collective and Unitary Models: A Clarification
AbstractIn this note we identify and clarify a confusion that has arisen in the literature about the exact relationship between unitary and collective models and what enters the Pareto weight and the sharing function. We suggest that we should denote as `unitary` any model that leads to outcomes that satisfy the Slutsky conditions whether or not these outcomes depend on distribution factors. In particular, income pooling is neither necessary nor sufficient for a unitary model. We also show that the presence of prices or total expenditure in the sharing rule cannot be used as a test for a unitary model.
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Bibliographic InfoArticle provided by Springer in its journal Review of Economics of the Household.
Volume (Year): 4 (2006)
Issue (Month): 1 (03)
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Web page: http://www.springerlink.com/link.asp?id=109451
Unitary; Collective; Intrahousehold allocation; Distribution factors; Demand; D13;
Other versions of this item:
- Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2004. "Collective and Unitary Models: a Clarification," CAM Working Papers 2004-15, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Valerie Lechene & Martin Browning, 2004. "Collective and unitary models: a clarification," Economics Series Working Papers 191, University of Oxford, Department of Economics.
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
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