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Non cooperative household demand

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  • Valérie Lechene

    (Institute for Fiscal Studies and University College London)

  • Ian Preston

    ()
    (Institute for Fiscal Studies and University College London)

Abstract

We study noncooperative household models with two agents and several voluntarily contributed public goods, deriving the counterpart to the Slutsky matrix and demonstrating the nature of the deviation of its properties from those of a true Slutsky matrix in the unitary model. We provide results characterising both cases in which there are and are not jointly contributed public goods. Demand properties are contrasted with those for collective models and conclusions drawn regarding the possibility of empirically testing the collective model against noncooperative alternatives and the noncooperative model against a general alternative.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W08/14.

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Date of creation: Dec 2008
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Handle: RePEc:ifs:ifsewp:08/14

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Related research

Keywords: Nash equilibrium; Intra-household allocation; Slutsky symmetry.;

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References

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Citations

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Cited by:
  1. Pierre-André Chiappori & Costas Meghir, 2014. "Intrahousehold Inequality," NBER Working Papers 20191, National Bureau of Economic Research, Inc.
  2. Claude d’Aspremont & Rodolphe Dos Santos Ferreira, 2009. "Household behavior and individual autonomy," Working Papers of BETA 2009-17, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  3. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2011. "The empirical content of Cournot competition," Center for Economic Studies - Discussion papers ces11.11, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  4. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2014. "Household Consumption When the Marriage is Stable," Working Papers ECARES ECARES 2014-21, ULB -- Universite Libre de Bruxelles.
  5. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data," Review of Economics of the Household, Springer, vol. 10(3), pages 395-421, September.
  6. Boone, J. & Wiel, K.M. van der & Vermeulen, F.M.P., 2009. "Kinky Choices, Dictators and Split Might: A Non-Cooperative Model for Household Consumption and Labor Supply," Discussion Paper 2009-53, Tilburg University, Center for Economic Research.
  7. 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).
  8. D’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, 2012. "Household behavior and individual autonomy: An extended Lindahl mechanism," CORE Discussion Papers 2012014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Kemnitz, Alexander & Thum, Marcel, 2013. "Gender Power, Fertility, and Family Policy," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79827, Verein für Socialpolitik / German Economic Association.

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