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A Collective Model of Household Behavior with Private and Public Goods: Theory and Some Evidence from U.S. Data

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Author Info
Olivier Donni

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Abstract

In the present paper, we adopt the collective approach to consumer behavior-which supposes that each household member is characterized by his/her own preferences and that the decision process results in Pareto-efficient outcomes-and assume, in addition, that agents are egoistic and consumption is either private or public. The main results are based on a conditional demand ('m-demand') framework in which household demands are directly derived from the marginal rates of substitution. We show that (i) household demands have to satisfy testable constraints and (ii) some elements of the decision process can be retrieved from observed behavior. These theoretical considerations are followed by an empirical application using the U.S. Consumer Expenditure Survey. Overall, it turns out that the data are consistent with the theoretical model.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0402.

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Date of creation: 2004
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Handle: RePEc:lvl:lacicr:0402

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Related research
Keywords: Collective Decision; Intra-household Distribution; Demand Analysis; Private Goods; Public Good; Lindahl Price; GMM;

Other versions of this item:

Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June. [Downloadable!] (restricted)
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  2. Helene Couprie, 2003. "Time allocation within the family: welfare implications of life in a couple," Labor and Demography 0312003, EconWPA. [Downloadable!]
  3. Altonji, Joseph G, 1986. "Intertemporal Substitution in Labor Supply: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S176-S215, June. [Downloadable!] (restricted)
    Other versions:
  4. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
    Other versions:
  5. Donni, Olivier, 2002. "A Simple Model of Collective Consumption," Cahiers de recherche 0204, CIRPEE. [Downloadable!]
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  6. Nelson, Julie A, 1988. "Household Economies of Scale in Consumption: Theory and Evidence," Econometrica, Econometric Society, vol. 56(6), pages 1301-14, November. [Downloadable!] (restricted)
  7. Richard Blundell ; Pierre-André Chiappori ; Thierry Magnac ; Costas Meghir, 2001. "Collective Labor Supply : Heterogeneity and Nonparticipation," Working Papers 2001-32, Centre de Recherche en Economie et Statistique. [Downloadable!]
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  8. Bourguignon, F. & Browning, M. & Chiappori, P. A., 1995. "The Collective Approach to Household Behaviour," DELTA Working Papers 95-04, DELTA (Ecole normale supérieure).
  9. Donni, Olivier, 2003. "Collective household labor supply: nonparticipation and income taxation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1179-1198, May. [Downloadable!] (restricted)
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  10. Olivier Donni, 2001. "Collective Female Labor Supply: Theory and Application," Cahiers de recherche CREFE / CREFE Working Papers 141, CREFE, Université du Québec à Montréal. [Downloadable!]
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  11. Pierre-André Chiappori & Richard Blundell & Costas Meghir, 2002. "Collective labour supply with children," IFS Working Papers W02/08, Institute for Fiscal Studies. [Downloadable!]
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  12. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche 0103, Université Laval - Département d'économique. [Downloadable!]
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  13. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January. [Downloadable!] (restricted)
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  14. Apps, Patricia F & Rees, Ray, 1997. "Collective Labor Supply and Household Production," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 178-90, February.
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  15. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January. [Downloadable!] (restricted)
  16. Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992. "Incomes and Outcomes: A structural Model of Intra-Household Allocation," DELTA Working Papers 92-23, DELTA (Ecole normale supérieure).
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  17. Slesnick, Daniel T, 1993. "Gaining Ground: Poverty in the Postwar United States," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 1-38, February. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Olivier Donni, 2004. "A Simple Model of Collective Consumption," DELTA Working Papers 2004-05, DELTA (Ecole normale supérieure). [Downloadable!]
    Other versions:
  2. Olivier Bargain, 2004. "Evaluation normative des politiques fiscales : du ménage à l'individu," DELTA Working Papers 2004-29, DELTA (Ecole normale supérieure). [Downloadable!]
  3. Frederic Vermeulen & André Watteyne, 2003. "Quand un et un ne font plus deux: calcul d'échelles d'équivalence intra-familiales au moyen d'un modèle collectif," Public Economics Working Paper Series wpechco, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics. [Downloadable!]
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