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Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses

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  • Carlsson, Fredrik

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • He, Haoran

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Martinsson, Peter

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Qin, Ping

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Sutter, Matthias

    () (Department of Public Finance, University of Innsbruck)

Abstract

Many economic decisions are made jointly within households. This raises the question about spouses’ relative influence on joint decisions and the determinants of relative influence. Using a controlled experiment (on inter-temporal choice), we let each spouse first make individual decisions and then make joint decisions with the other spouse. We use a random parameter probit model to measure the relative influence of spouses on joint decisions. In general, husbands have a stronger influence than wives. However, in richer households and when the wife is older than the husband, we find a significantly stronger influence of the wife on joint decisions.

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File URL: http://hdl.handle.net/2077/23159
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 465.

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Length: 28 pages
Date of creation: 17 Aug 2010
Date of revision:
Handle: RePEc:hhs:gunwpe:0465

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: household decision making; spouses; relative influence; random parameter model; field experiment; time preferences;

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  1. Ian Bateman & Alistair Munro, 2005. "An Experiment on Risky Choice Amongst Households," Economic Journal, Royal Economic Society, vol. 115(502), pages C176-C189, 03.
  2. John List & David Reiley, 2008. "Field experiments," Artefactual Field Experiments 00091, The Field Experiments Website.
  3. André Palma & Nathalie Picard & Anthony Ziegelmeyer, 2011. "Individual and couple decision behavior under risk: evidence on the dynamics of power balance," Theory and Decision, Springer, vol. 70(1), pages 45-64, January.
  4. Martin Browning & P.A. Chiappori, 1996. "Efficient Intra-Household Allocations - A General Characterization and Empirical Tests," Discussion Papers 96-10, University of Copenhagen. Department of Economics.
  5. Jon Strand, 2007. "Public-good valuation and intra-family allocation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(4), pages 527-543, December.
  6. Duncan Thomas, 1994. "Like Father, like Son; Like Mother, like Daughter: Parental Resources and Child Height," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 950-988.
  7. Donna Dosman & Wiktor Adamowicz, 2006. "Combining Stated and Revealed Preference Data to Construct an Empirical Examination of Intrahousehold Bargaining," Review of Economics of the Household, Springer, vol. 4(1), pages 15-34, 03.
  8. Phipps, Shelley A & Burton, Peter S, 1998. "What's Mine Is Yours? The Influence of Male and Female Incomes on Patterns of Household Expenditure," Economica, London School of Economics and Political Science, vol. 65(260), pages 599-613, November.
  9. Munro, Alistair & Bateman, Ian J. & McNally, Tara, 2008. "The family under the microscope: an experiment testing economic models of household choice," MPRA Paper 8974, University Library of Munich, Germany.
  10. Qian, Nancy, 2006. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," CEPR Discussion Papers 5986, C.E.P.R. Discussion Papers.
  11. John Quiggin, 1998. "Individual and Household Willingness to Pay for Public Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 58-63.
  12. Cochard François, Couprie Helene, Hopfensitz Astrid, 2009. "Do Spouses Cooperate? And If Not: Why?," THEMA Working Papers 2009-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  13. Nesha Beharry-Borg & David Hensher & Riccardo Scarpa, 2009. "An Analytical Framework for Joint vs Separate Decisions by Couples in Choice Experiments: The Case of Coastal Water Quality in Tobago," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 95-117, May.
  14. Kfir Eliaz & Debraj Ray & Ronny Razin, 2006. "Choice Shifts in Groups: A Decision-Theoretic Basis," American Economic Review, American Economic Association, vol. 96(4), pages 1321-1332, September.
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