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Household behavior and individual autonomy: An extended Lindahl mechanism

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  • D’ASPREMONT, Claude

    ()
    (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • DOS SANTOS FERREIRA, Rodolphe

    ()
    (BETA, Université de Strasbourg, F-67085 Srasbourg, France)

Abstract

We present a comprehensive model of household economic decision covering both fully cooperative and non-cooperative cases as well as semi- cooperative cases, varying with income distribution and a parameter vector ÷ representing degrees of individual autonomy with respect to the public goods. In this model, the concept of "household ÷-equilibrium" is introduced through the reformulation of the Lindahl equilibrium for Nash-implementation and its extension to semi-cooperation. Existence is proved and some generic properties derived. An example is given to illustrate. Finally, a particular decomposition of the pseudo-Slutsky matrix is derived and the testability of the various models discussed.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2012014.

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Date of creation: 05 Apr 2012
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Handle: RePEc:cor:louvco:2012014

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Keywords: intra-household allocation; household financial management; degree of autonomy; Lindahl prices; local income pooling; separate spheres;

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  1. d’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, 2004. "Price-quantity competition with varying toughness," CORE Discussion Papers 2004088, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Martin Browning & Pierre-Andre Chiappori, 1994. "Efficient Intra-Household Allocations: a General Characterization and Empirical Tests," Department of Economics Working Papers 1994-02, McMaster University.
  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 1245-77, September.
  4. Valérie Lechene & Ian Preston, 2008. "Non cooperative household demand," IFS Working Papers W08/14, Institute for Fiscal Studies.
  5. Pahl, Jan, 2008. "Family finances, individualisation, spending patterns and access to credit," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 577-591, April.
  6. Nicholas Yannelis, 2009. "Debreu’s social equilibrium theorem with asymmetric information and a continuum of agents," Economic Theory, Springer, vol. 38(2), pages 419-432, February.
  7. 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.
  8. Cherchye, L.J.H. & Rock, B. de & Vermeulen, F.M.P., 2007. "The collective model of household consumption: A nonparametric characterization," Open Access publications from Tilburg University urn:nbn:nl:ui:12-194157, Tilburg University.
  9. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October.
  10. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  11. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2010. "Distributional Effects in Household Models: Separate Spheres and Income Pooling," Economic Journal, Royal Economic Society, vol. 120(545), pages 786-799, 06.
  12. Laurens Cherchye & Thomas Demuynck & Bram De Rock, 2011. "Revealed Preference Analysis of Non‐Cooperative Household Consumption," Economic Journal, Royal Economic Society, vol. 121(555), pages 1073-1096, 09.
  13. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  14. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  15. Walker, Mark, 1981. "A Simple Incentive Compatible Scheme for Attaining Lindahl Allocations," Econometrica, Econometric Society, vol. 49(1), pages 65-71, January.
  16. Valérie Lechene & Ian Preston, 2005. "Household Nash equilibrium with voluntarily contributed public goods," IFS Working Papers W05/06, Institute for Fiscal Studies.
  17. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics, revised Oct 2001.
  18. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  19. Hurwicz, L, 1979. "Outcome Functions Yielding Walrasian and Lindahl Allocations at Nash Equilibrium Points," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 217-25, April.
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