Rationality in the joint allocation of private and public goods
AbstractThis paper presents an extension of "collective models" that rationalize household demands as efficient allocations, allowing for the joint allocation of public and private goods. Starting from the problem of efficiency, and adding a separability assumption between public goods and exclusive private goods, we obtain two results. Firstly, we find some new restrictions upon the derivatives of the demand functions. Secondly, we predict how the sharing of household expenditures between the man and the woman changes when the exclusive good's prices changes, and we measure the effect of the consumption of public goods on this change.
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Collective choice; Public goods; Separability;
Other versions of this item:
- Zamora, Bernarda, 2000. "“Rationality in the Joint Allocation of Private and Public Goods”," MPRA Paper 6640, University Library of Munich, Germany.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
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