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Intra Household Allocation of Consumption : A Model and Some Evidence from French Data

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Author Info

  • Bourguignon, F.
  • Browning, M.
  • Chiappori, P.A.
  • Lechene, V.

Abstract

The goal of this paper is twofold. First, we reproduce upon French data previous tests of the so-called "income pooling" hypothesis, a consequence of traditional models of household behaviour according to which only total income -- and not income distribution across members -- should matter. We find that income pooling is rejected: for a given level of total income, the share of husband's and wife's own income significantly affects the structure of consumption. Our second purpose is more innovative. We construct a theoretical model of collective decision making, based upon the efficiency assumption of collective decision making. Both our setting and the traditional, household preference model can be nested within a family of functional forms. The collective model generates specific restrictions upon the parameters that can the tested. Those restrictions turn out not to be rejected by the data.

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Bibliographic Info

Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 92-08.

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Length: 28 pages
Date of creation: 1992
Date of revision:
Publication status: Published in Annales d'Economie et Statistiques, 1993, 29, pp. 137-156
Handle: RePEc:del:abcdef:92-08

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Keywords: household ; income ; data analysis ; consumption ; economic models;

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