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The Collective Farm-household Model: Policy and Welfare Simulations

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  • Eleonora Matteazzi
  • Martina Menon
  • Federico Perali

Abstract

This study develops a household enterprise model extended to encompass recent advances in collective theory. We use a simulation model in which production and consumption-leisure choices are represented along with the rule governing intra-household resource allocation, to analyze the income and wage responses of each family member. The household is treated as an equilibrium model whose accounts are based on a collective household accounting matrix, with the social dimension being the wife/husband classes. The simulation analysis illustrates the policy relevance of the collective approach to household behavior for inferring the impact of economic policies on individual behavior and welfare. We also propose insightful comparisons with the unitary model to make the behavioral and welfare policy relevance of the collective approach evident.

Suggested Citation

  • Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.
    • Handle: RePEc:oup:apecpp:v:39:y:2017:i:1:p:111-153.
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    Cited by:

    1. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    2. Jean-Paul Chavas & Eleonora Matteazzi & Martina Menon & Federico Perali, 2021. "Bargaining in the Family," CHILD Working Papers Series 88 JEL Classification: D1, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    3. Echeverría, Lucía, 2020. "Modelos colectivos de consumo y distribución intra-hogar. Teoría y aplicaciones," Nülan. Deposited Documents 3832, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. Diksha Arora & Codrina Rada, 2020. "Gender norms and intrahousehold allocation of labor in Mozambique: A CGE application to household and agricultural economics," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 259-272, March.
    5. Maria Gabriella Campolo & Antonino Di Pino, 2020. "Selectivity of Bargaining and the Effect of Retirement on Labour Division in Italian Couples," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 639-657, December.
    6. Jean-Paul Chavas & Eleonora Matteazzi & Martina Menon & Federico Perali, 2022. "(In)Efficient Bargaining in the Family," Working Papers 2, SITES.
    7. Elisa Meneghello & Martina Menon & Federico Perali & Furio Rosati, 2022. "The Shadow Wage of Child Labor: An application to Nepal," Working Papers 8, SITES.

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    More about this item

    Keywords

    collective farm-household model; household production; household social accounting matrix; simulation analysis; comparative statics;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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