The Saving Behaviour of a Two Person Household
AbstractWives are typically younger than their husbands and women typically live longer than men. These two facts mean that for a typical married couple, wives have more incentive to save for old age than do husbands. This paper presents a theoretical model of the determination of household saving and portfolio choice taking into account differences in preferences for saving. The model is a non-cooperative game in which each person can use their own current consumption to contribute to current (household) consumption or to a range of assets. The results derived are in marked contrast to 'unitary' models of intertemporal allocation that assume a single household utility function and conclude that saving is unaffected by the distribution of income within the household. The most important result is that the level and the composition (portfolio) of saving and the time path of consumption is highly dependent on the distribution of income within the household. It is also shown that the introduction of an actuarially fair state pension scheme may have non-neutral effects on saving.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 1994-01.
Length: 40 pages
Date of creation: Jan 1994
Date of revision:
Contact details of provider:
Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.economics.mcmaster.ca/
More information through EDIRC
Other versions of this item:
- Browning, Martin, 2000. " The Saving Behaviour of a Two-Person Household," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 102(2), pages 235-51, June.
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
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.:
- Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992.
"Incomes and Outcomes: A structural Model of Intra-Household Allocation,"
DELTA Working Papers, DELTA (Ecole normale supÃ©rieure)
92-23, DELTA (Ecole normale supérieure).
- 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, University of Chicago Press, vol. 102(6), pages 1067-96, December.
- Chiappori, Pierre-Andre, 1992.
"Collective Labor Supply and Welfare,"
Journal of Political Economy, University of Chicago Press,
University of Chicago Press, vol. 100(3), pages 437-67, June.
- Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers, DELTA (Ecole normale supÃ©rieure) 89-07, DELTA (Ecole normale supérieure).
- Martin Browning & Pierre-Andre Chiappori, 1994.
"Efficient Intra-Household Allocations: a General Characterization and Empirical Tests,"
Department of Economics Working Papers
1994-02, McMaster University.
- M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, Econometric Society, vol. 66(6), pages 1241-1278, November.
- Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers, DELTA (Ecole normale supÃ©rieure) 94-16, DELTA (Ecole normale supérieure).
- 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.
- Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 56(1), pages 63-90, January.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.