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

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Author Info

  • 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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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest.91.3.617
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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. Pierre-André Chiappori & Costas Meghir, 2014. "Intrahousehold Inequality," NBER Working Papers 20191, National Bureau of Economic Research, Inc.
  2. Couprie Helene, Peluso Eugenio and Trannoy Alain, 2009. "Is power more evenly balanced in poor households?," THEMA Working Papers 2009-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  3. 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 2010-30, CEPS/INSTEAD.
  4. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute for the Study of Labor (IZA).
  5. Olivier Bargain & Olivier Donni, 2012. "Targeting and child poverty," Social Choice and Welfare, Springer, vol. 39(4), pages 783-808, October.
  6. 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 201306, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2013.
  7. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
  8. Hélène Couprie & Gaëlle Ferrant, 2012. "Welfare Comparisons, Economies of Scale and Equivalence Scale in Time Use," THEMA Working Papers 2012-43, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  9. P. Chiappori, 2011. "Collective labor supply with many consumption goods," Review of Economics of the Household, Springer, vol. 9(2), pages 207-220, June.

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