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Out of the Wallet and into the Purse: Using Micro Data to Test Income Pooling

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Author Info
Jennifer Ward-Batts (Claremont McKenna College)

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Abstract

Unitary models, assuming a single objective function and unified budget constraint, are traditionally used to model household behavior. Most empirical tests of unitary models rely on endogenous regressors. This paper uses an exogenous change in the intrahousehold distribution of income, provided by a change in U.K. Family Allowance policy. Expenditure shares are estimated for a wide range of goods. Shifts in expenditure shares for assignable goods, such as men’s clothing, children’s clothing, and men’s tobacco, suggest that children benefited at the expense of men when this policy change shifted income within households from men to women.

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Paper provided by Claremont Colleges in its series Claremont Colleges Working Papers with number 2003-10.

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Date of creation: May 2003
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Handle: RePEc:clm:clmeco:2003-10

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Related research
Keywords: income pooling; intrahousehold allocation; child benefit; collective model; unitary model; family policy; household demand;

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D19 - Microeconomics - - Household Behavior - - - Other
D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June. [Downloadable!] (restricted)
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  2. François Bourguignon & Martin Browning & Pierre-André Chiappori & Valérie Lechene, 1993. "Intra Household Allocation of Consumption: A Model and some Evidence from French Data," Annales d'Economie et de Statistique, ADRES, issue 29, pages 08, Janvier-M. [Downloadable!]
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  3. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December. [Downloadable!] (restricted)
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  4. Ted Bergstrom, 1995. "A Survey of Theories of the Family," Papers _027, University of Michigan, Department of Economics. [Downloadable!]
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  5. Hoddinott, J. & Haddad, L., 1994. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Working Papers Series 94.17, Centre for the Study of African Economies, University of Oxford.
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  6. Deaton, Angus & Irish, Margaret, 1984. "Statistical models for zero expenditures in household budgets," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 59-80. [Downloadable!] (restricted)
  7. Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
  8. Alderman, H. & Chiappori, P.A. & Haddad, L., 1994. "Unitary versus Collective Models of the Household: Time to Shift the Burden of Proof?," DELTA Working Papers 94-17, DELTA (Ecole normale supérieure).
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  9. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," World Bank Research Observer, Oxford University Press, vol. 10(1), pages 1-19, February.
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  13. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
  14. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September. [Downloadable!] (restricted)
  15. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
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  17. Lundberg, Shelly & Pollak, Robert A, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-58, Fall. [Downloadable!] (restricted)
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  19. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert A. Pollak, 2005. "Bargaining Power in Marriage: Earnings, Wage Rates and Household Production," NBER Working Papers 11239, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Nunley, John M. & Seals, Alan, 2009. "Child-Custody Reform and Marriage-Specific Investment in Children," MPRA Paper 16313, University Library of Munich, Germany. [Downloadable!]
  3. Chris van Klaveren & Bernard van Praag & Henriette Maassen van den Brink, 2006. "Empirical Estimation Results of a Collective Household Time Allocation Model," IZA Discussion Papers 2107, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Jens Bonke & Hans Uldall-Poulsen, 2007. "Why do families actually pool their income? Evidence from Denmark," Review of Economics of the Household, Springer, vol. 5(2), pages 113-128, June. [Downloadable!] (restricted)
  5. Lee, Jungmin, 2004. "Observable and Unobservable Household Sharing Rules: Evidence from Young Couples' Pocket Money," IZA Discussion Papers 1250, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Schady, Norbert & Rosero, Jose, 2007. "Are cash transfers made to women spent like other sources of income?," Policy Research Working Paper Series 4282, The World Bank. [Downloadable!]
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  7. Bütikofer, Aline & Gerfin, Michael, 2009. "The Economies of Scale of Living Together and How They Are Shared: Estimates Based on a Collective Household Model," IZA Discussion Papers 4327, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. Leora Friedberg & Anthony Webb, 2006. "Determinants and Consequences of Bargaining Power in Households," NBER Working Papers 12367, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Eriksson, Rickard, 2008. "Is women's non-market time more valuable than men's?," Working Paper Series 2/2008, Swedish Institute for Social Research. [Downloadable!]
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