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Testing Nash-bargaining household models with time-series data

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  • Hoddinott, John
  • Adam, Christopher

Abstract

This paper uses a “natural experiment” in Canadian divorce law reform to discriminate empirically between unitary and Nash-bargained models of the household. Using time-series data from three Canadian provinces, it demonstrates that following landmark divorce law reforms in the 1970s—reforms that led to improvements in women's expected settlement upon divorce in Ontario and British Columbia, suicide rates for older, married women in these provinces registered a sharp decline. Similar declines were not registered for younger, unmarried women or men in Ontario and British Columbia, nor for older, married women in Quebec, where the legal basis for divorce did not change. These results are consistent with Nash-bargained models of the household but not with the unitary model.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 52.

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Date of creation: 1998
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Handle: RePEc:fpr:fcnddp:52

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Related research

Keywords: Gender ; Households Models. ; Canada Social policy. ; Gender issues. ; Household resource allocation ;

References

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  1. 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.
  2. 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).
  3. Donald W.K. Andrews, 1990. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Cowles Foundation Discussion Papers 943, Cowles Foundation for Research in Economics, Yale University.
  4. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier.
  5. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
  6. Favero, C. & Hendry, D., 1990. "Testing The Lucas Critique: A Review," Economics Series Working Papers 99101, University of Oxford, Department of Economics.
  7. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
  8. Ted Bergstrom, 1995. "A Survey of Theories of the Family," Papers _027, University of Michigan, Department of Economics.
  9. 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.
  10. Strauss, John & Beegle, Kathleen, 1996. "Intrahousehold Allocations: A Review of Theories, Empirical Evidence and Policy Issues," Food Security International Development Working Papers 54688, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  11. Hamermesh, Daniel S & Soss, Neal M, 1974. "An Economic Theory of Suicide," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 83-98, Jan.-Feb..
  12. Rosenzweig, Mark R & Schultz, T Paul, 1984. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Reply," American Economic Review, American Economic Association, vol. 74(3), pages 521-22, June.
  13. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
  14. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
  15. 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.
  16. Bean, C R & Layard, P R G & Nickell, S J, 1986. "The Rise in Unemployment: A Multi-country Study," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S1-22, Supplemen.
  17. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
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Citations

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Cited by:
  1. Marcel Fafchamps & Agnes R Quisumbing, 2000. "Control and Ownership of Assets Within Rural Ethiopian Households," Economics Series Working Papers WPS/2000-27, University of Oxford, Department of Economics.
  2. Haddad, Lawrence James & Oshaug, Arne, 1999. "How does the human rights perspective help to shape the food and nutrition policy research agenda?," FCND discussion papers 56, International Food Policy Research Institute (IFPRI).
  3. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
  4. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany.
  5. Mabsout, Ramzi & van Staveren, Irene, 2010. "Disentangling Bargaining Power from Individual and Household Level to Institutions: Evidence on Women's Position in Ethiopia," World Development, Elsevier, vol. 38(5), pages 783-796, May.
  6. Michael Malcolm, 2012. "A noncooperative marriage model with remarriage," Review of Economics of the Household, Springer, vol. 10(1), pages 133-151, March.

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