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Enlarging the collective model of household behaviour: a revealed preference analysis

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  • d’ASPREMONT Claude

    (Université catholique de Louvain, CORE, Belgium)

  • DOS SANTOS FERREIRA Rodolphe

    (Université de Strasbourg)

Abstract

We use a comprehensive model of strategic household behaviour in which the spouses’ expenditure on each public good is decomposed into autonomous spending and coordinated spending à la Lindahl. We obtain a continuum of semi-cooperative regimes parameterized by the relative weights put on autonomous spending, by each spouse and for each public good, nesting full cooperative and non-cooperative regimes as limit cases. Testing is approached through revealed preference analysis, by looking for rationalisability of observed data sets, with the price of each public good lying between the maximum and the sum of the hypothesized marginal willingnesses to pay of the two spouses. Once rationalised, an observed data set always allows to identify the sharing rule, except when both spouses contribute in full autonomy to some public good (a situation of local income pooling).

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  • d’ASPREMONT Claude & DOS SANTOS FERREIRA Rodolphe, 2017. "Enlarging the collective model of household behaviour: a revealed preference analysis," LIDAM Discussion Papers CORE 2017017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2017017
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    Cited by:

    1. Laurens Cherchye & Sam Cosaert & Thomas Demuynck & Bram De Rock, 2020. "Group Consumption with Caring Individuals," The Economic Journal, Royal Economic Society, vol. 130(627), pages 587-622.
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    3. Wen Jun & Junaid Waheed & Hadi Hussain & Ihsan Jamil & Denisa Borbášová & Muhammad Khalid Anser, 2020. "Working women and per capita household consumption expenditures; an untouched reality," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 35-69.

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    More about this item

    Keywords

    semi-cooperative household behaviour; revealed preference analysis; rationalisability; sharing rule identification;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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