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

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Author Info

  • Carlsson, Fredrik

    ()
    (University of Gothenburg)

  • He, Haoran

    ()
    (Beijing Normal University)

  • Martinsson, Peter

    ()
    (University of Gothenburg)

  • Qin, Ping

    ()
    (University of Gothenburg)

  • Sutter, Matthias

    ()
    (European University Institute)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5127.

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Length: 30 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5127

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Keywords: household decision making; spouses; relative influence; random parameter model; field experiment; time preferences;

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Citations

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Cited by:
  1. Filippin, A. & Crosetto, P., 2014. "A reconsideration of gender differences in risk attitudes," Working Papers, Grenoble Applied Economics Laboratory (GAEL) 2014-01, Grenoble Applied Economics Laboratory (GAEL).
  2. Holden, Stein & Bezu, Sosina, 2014. "Are Wives less Selfish than their Husbands? Evidence from Hawk-Dove Game Field Experiments," CLTS Working Papers, Centre for Land Tenure Studies, Norwegian University of Life Sciences 3/14, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  3. Munro, Alistair & Verschoor, Arjan & Dubey, Amaresh, 2013. "Does working with spouses make teams more productive? A field experiment in India using NREGA," Economics Letters, Elsevier, Elsevier, vol. 118(3), pages 506-508.
  4. Mohammed Abdellaoui & Olivier l'Haridon & Corina Paraschiv, 2013. "Do Couples Discount Future Consequences Less than Individuals?," Economics Working Paper Archive (University of Rennes 1 & University of Caen), Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS 201320, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  5. Laurent Denant-Boèmont & Enrico Diecidue & Olivier L'Haridon, 2013. "Patience and Time Consistency in Collective Decisions," Economics Working Paper Archive (University of Rennes 1 & University of Caen), Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS 201329, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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