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Inefficient Collective Households: Cooperation and Consumption

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  • Arthur Lewbel
  • Krishna Pendakur

Abstract

We propose a model of consumption inefficiency in collective households. Inefficiency depends on a ‘cooperation factor’, which can also affect both the allocation of resources within a household and the utility of household members. Households are conditionally efficient, conditioning on the value of the cooperation factor. This lets us exploit convenient modelling features of efficient households (like not needing to specify the bargaining process), while still accounting for, and measuring the dollar cost of, inefficient levels of cooperation.

Suggested Citation

  • Arthur Lewbel & Krishna Pendakur, 2022. "Inefficient Collective Households: Cooperation and Consumption," The Economic Journal, Royal Economic Society, vol. 132(645), pages 1882-1893.
    • Handle: RePEc:oup:econjl:v:132:y:2022:i:645:p:1882-1893.
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    2. NIKIEMA, Relwendé Apollinaire, 2024. "Intrahousehold Consumption Inequality, Economies of Scale, Indifference Scales, and Family Structure," IDE Discussion Papers 915, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Calvi, Rossella & Penglase, Jacob & Tommasi, Denni & Wolf, Alexander, 2023. "The more the poorer? Resource sharing and scale economies in large families," Journal of Development Economics, Elsevier, vol. 160(C).
    4. Ulugbek Aminjonov & Olivier Bargain & Maira Colacce & Luca Tiberti, 2022. "Culture, Intra-household Distribution and Individual Poverty," Working Papers - Economics wp2022_21.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    5. Bose-Duker,Theophiline & Gaddis,Isis & Kilic,Talip & Lechene,Valérie & Pendakur,Krishna, 2021. "Diamonds in the Rough? : Repurposing Multi-Topic Surveys to Estimate Individual-Level Consumption Poverty," Policy Research Working Paper Series 9661, The World Bank.

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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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