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Children's Resources in Collective Households: Identification, Estimation and an Application to Child Poverty in Malawi

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Author Info

  • Geoffrey Dunbar

    (Simon Fraser University)

  • Arthur Lewbel

    ()
    (Boston College)

  • Krishna Pendakur

    (Simon Fraser University)

Abstract

The share of household resources devoted to children is hard to identify, because consumption is measured at the household level, and goods can be shared. Using semiparametric restrictions on individual preferences within a collective model, we identify how total household resources are divided up among household members, by observing how each family member's expenditures on a single private good like clothing varies with income and family size. Using data from Malawi we show how resources devoted to wives and children vary by family size and structure, and we find that standard poverty indices understate the incidence of child poverty.

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Bibliographic Info

Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 758.

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Date of creation: 01 Jun 2010
Date of revision: 31 Jan 2012
Publication status: forthcoming, American Economic Review
Handle: RePEc:boc:bocoec:758

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Keywords: Collective Model; Cost of Children; Bargaining Power; Identification; Sharing rule; Demand Systems; Engel Curves;

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  1. Anyck Dauphin & Abdel‐Rahmen El Lahga & Bernard Fortin & Guy Lacroix, 2011. "Are Children Decision‐Makers within the Household?," Economic Journal, Royal Economic Society, vol. 121(553), pages 871-903, 06.
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Cited by:
  1. Laurens Cherchye & Bram De Rock & Arthur Lewbel & Frederic Vermeulen, 2012. "Sharing Rule Identification for General Collective Consumption Models," Boston College Working Papers in Economics 809, Boston College Department of Economics, revised 01 Jul 2013.
  2. Doss, Cheryl, 2013. "Intrahousehold bargaining and resource allocation in developing countries," Policy Research Working Paper Series 6337, The World Bank.
  3. Martina Menon & Elisa Pagani & Federico Perali, 2012. "A Characterization of Collective Individual Expenditure Functions," Working Papers 20/2012, University of Verona, Department of Economics.
  4. Bruton, Garry D. & Ketchen, David J. & Ireland, R. Duane, 2013. "Entrepreneurship as a solution to poverty," Journal of Business Venturing, Elsevier, vol. 28(6), pages 683-689.
  5. Olivier Bargain & Olivier Donni & Prudence Kwenda, 2011. "Intrahousehold Distribution and Child Poverty: Theory and Evidence from Côte d'Ivoire," Working Papers 2011-031, Human Capital and Economic Opportunity Working Group.
  6. Marcella Veronesi & Martina Menon & Federico Perali, 2007. "Extensions of the Traditional Travel Cost Model of Non-Market Valuation to a Collective Framework: Evidence from the Field," Working Papers 42/2007, University of Verona, Department of Economics.
  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. 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.
  9. Olivier Bargain & Olivier Donni & Prudence Kwenda, 2013. "Intrahousehold Distribution and Poverty: Evidence from Côte d’Ivoire," THEMA Working Papers 2013-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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