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Collective and Unitary Models: A Clarification

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  • Martin Browning
  • Pierre-André Chiappori
  • Valérie Lechene

    ()

Abstract

In 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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File URL: http://hdl.handle.net/10.1007/s11150-005-6694-2
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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 4 (2006)
Issue (Month): 1 (03)
Pages: 5-14

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Handle: RePEc:kap:reveho:v:4:y:2006:i:1:p:5-14

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: Unitary; Collective; Intrahousehold allocation; Distribution factors; Demand; D13;

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References

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  1. Basu, Kaushik, 2001. "Gender and Say: A Model of Household Behavior with Endogenously-Determined Balance of Power," Working Papers 01-01, Cornell University, Center for Analytic Economics.
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