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A Simple Approach to Investigate Intrahousehold Allocation of Private and Public Goods

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  • Olivier Donni

    (THEMA and Université de Cergy-Pontoise)

Abstract

We adopt the collective approach to consumer behavior with egoistic agents and assume that household consumption is either private or public. We then show that (1) household demand functions have to satisfy testable constraints and (2) some elements of the decision process can be retrieved from observed behavior. These results are based on a conditional demand (m-demand) framework in which household demand functions are directly derived from the individual marginal rates of substitution. Finally, we present an empirical illustration of these theoretical results using the U.S. Consumer Expenditure Survey. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 91 (2009)
Issue (Month): 3 (August)
Pages: 617-628

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Handle: RePEc:tpr:restat:v:91:y:2009:i:3:p:617-628

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Wiktor Adamowicz & Mark Dickie & Shelby Gerking & Marcella Veronesi & David Zinner, 2013. "Household Decision-Making and Valuation of Environmental Health Risks to Parents and their Children," NCEE Working Paper Series, National Center for Environmental Economics, U.S. Environmental Protection Agency 201306, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2013.
  2. Pierre-Andre Chiappori & Costas Meghir, 2014. "Intrahousehold Inequality," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 1948, Cowles Foundation for Research in Economics, Yale University.
  3. Olivier Bargain & Olivier Donni, 2012. "Targeting and child poverty," Social Choice and Welfare, Springer, Springer, vol. 39(4), pages 783-808, October.
  4. Couprie Helene, Peluso Eugenio and Trannoy Alain, 2009. "Is power more evenly balanced in poor households?," THEMA Working Papers, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise 2009-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  5. Hélène Couprie & Gaëlle Ferrant, 2012. "Welfare Comparisons, Economies of Scale and Equivalence Scale in Time Use," THEMA Working Papers, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise 2012-43, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  6. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, Elsevier, vol. 56(4), pages 792-813.
  7. P. Chiappori, 2011. "Collective labor supply with many consumption goods," Review of Economics of the Household, Springer, Springer, vol. 9(2), pages 207-220, June.
  8. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents? Bargaining," CEPS/INSTEAD Working Paper Series, CEPS/INSTEAD 2010-30, CEPS/INSTEAD.
  9. Olivier Bargain & Olivier Donni, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," Working Papers, School Of Economics, University College Dublin 201001, School Of Economics, University College Dublin.

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