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Extending the Collective Approach to Children: A Rothbarth-Type Measure of Child Costs Consistent with Scale Economies and Parents Bargaining

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  • Donni Olivier
  • Bargain Olivier

    ()
    (THEMA, Universite de Cergy-Pontoise
    University College of Dublin, CHILD and IZA)

Abstract

We extend the collective model of household consumption to account explicitly for child welfare and economies of scale. Each household member is characterized by specific prefer- ences and the (unspecified) allocation process is assumed to be efficient. Following the principle of the Rothbarth approach, the identification of the children's share requires the observation of adult-speci?c goods. The share of household income accruing to children in this context o¤ers a new measure of the cost of children, i.e., it differs from the traditional approach in that it is compatible with economies of scale and parents'bargaining. We illustrate the method with an application on the French Household Budget Survey.

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Bibliographic Info

Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2011-06.

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Date of creation: 2011
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Handle: RePEc:ema:worpap:2011-06

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Related research

Keywords: Consumer Demand; Collective Model; Rothbarth Method; Cost of Children; Scale Economies; Equivalence Scales; Indifference Scales.;

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  1. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2010. "Household Choices and Child Development," Working Papers 2011-039, Human Capital and Economic Opportunity Working Group.
  2. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
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