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Let’s Talk About the Money: Spousal Communication, Expenditures and Farm Production

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  • Chen, Joyce J.
  • Collins, LaPorchia

Abstract

There is a burgeoning literature highlighting asymmetric information among household members. However, little is known about the source of the asymmetry and its effect on efficiency. Using a unique survey of Ghanaian households, we examine the accuracy of spousal cross-reports and the effect of discrepancies on farm production. We find that information problems pertain to scale, the quantity of resources, and scope, the distribution of resources, as well as allocation decisions on the margin (Engel curves). Moreover, we find that information asymmetries lead to inefficiency in production, and the effect is equivalent to about 15% of the variation across households.

Suggested Citation

  • Chen, Joyce J. & Collins, LaPorchia, 2013. "Let’s Talk About the Money: Spousal Communication, Expenditures and Farm Production," 2014 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2014, Philadelphia, PA 161652, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaeass:161652
    DOI: 10.22004/ag.econ.161652
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    1. Duflo, Esther & Udry, Christopher R., 2003. "Intrahousehold Resource Allocation in Cote D'Ivoire: Social Norms, Separate Accounts and Consumption Choices," Center Discussion Papers 28404, Yale University, Economic Growth Center.
    2. Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
    3. Nava Ashraf, 2009. "Spousal Control and Intra-household Decision Making: An Experimental Study in the Philippines," American Economic Review, American Economic Association, vol. 99(4), pages 1245-1277, September.
    4. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-1046, October.
    5. Richard Akresh & Joyce J. Chen & Charity T. Moore, 2016. "Altruism, Cooperation, and Efficiency: Agricultural Production in Polygynous Households," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 661-696.
    6. Shelley A. Phipps & Peter S. Burton, 1998. "What’s Mine is Yours? The Influence of Male and Female Incomes on Patterns of Household Expenditure," Economica, London School of Economics and Political Science, vol. 65(260), pages 599-613, November.
    7. Chen, Joyce J., 2013. "Identifying non-cooperative behavior among spouses: Child outcomes in migrant-sending households," Journal of Development Economics, Elsevier, vol. 100(1), pages 1-18.
    8. Richard Akresh & Joyce J. Chen & Charity T. Moore, 2012. "Productive Efficiency and the Scope for Cooperation in Polygynous Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 395-401.
    9. Castilla, Carolina, 2011. "Ties that Bind: The Kin System as a Mechanism of Income-Hiding between Spouses in Rural Ghana," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 104072, Agricultural and Applied Economics Association.
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    Cited by:

    1. Krumbiegel, Katharina & Maertens, Miet & Wollni, Meike, 2017. "Modern agri-food systems, horticultural employment and women's empowerment," GlobalFood Discussion Papers 257241, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Deschênes, Sarah & Dumas, Christelle & Lambert, Sylvie, 2020. "Household resources and individual strategies," World Development, Elsevier, vol. 135(C).
    3. Castilla, Carolina, 2019. "What's yours is mine, and what's mine is mine: Field experiment on income concealing between spouses in India," Journal of Development Economics, Elsevier, vol. 137(C), pages 125-140.
    4. Anna Josephson, 2021. "Intra-Household Management of Joint Resources: Evidence from Malawi," Papers 2112.12766, arXiv.org, revised Apr 2022.
    5. Lambrecht, Isabel Brigitte, 2016. "“As a Husband I Will Love, Lead, and Provide.” Gendered Access to Land in Ghana," World Development, Elsevier, vol. 88(C), pages 188-200.
    6. Lambrecht, Isabel, 2016. "“As a husband I will love, lead, and provide:†Gendered access to land in Ghana:," IFPRI discussion papers 1514, International Food Policy Research Institute (IFPRI).
    7. Nicholas Magnan & Abby M. Love & Fulgence J. Mishili & Ganna Sheremenko, 2020. "Husbands’ and wives’ risk preferences and improved maize adoption in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 743-758, September.
    8. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
    9. Fiala, Nathan & Masselus, Lise, 2022. "Whom to ask? Testing respondent effects in household surveys," Ruhr Economic Papers 935, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    More about this item

    Keywords

    Consumer/Household Economics; Production Economics;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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