Building the Family Nest: A Collective Household Model with Competing Pre-Marital Investments and Spousal Matching
AbstractWe develop a model of the household in which spousal incomes are determined by pre-marital investments, the marriage market is charaterized by assortative matching, and endogenously-determined sharing rules form the basis of intra-household allocations. By incorporating pre-marital investments and spousal matching into the collective household model, we are able to (a) establish the welfare implications of the collective model for pre-marital choices and spousal matching and (b) identify the fundamental determinants of endogenously-determined and maritally sustainable intra-marital sharing rules. In particular, we find that all sharing rules along the assortative order support unconditionally efficient outcomes where both pre-marital investments and intra-household allocations are efficient. We also show that, for each couple, the marriage market generates a unique and maritally sustainable sharing rule that is a function of the distribution of pre-marital endowments and the sex ratios in the market.
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 Society for Economic Dynamics in its series 2004 Meeting Papers with number 168.
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
The Collective Model; Marriage; Bargaining; Household Labor Supply;
Find related papers by JEL classification:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Iyigun, Murat & Walsh, Randall P., 2007. "Endogenous gender power, household labor supply and the demographic transition," Journal of Development Economics, Elsevier, vol. 82(1), pages 138-155, January.
- Daniela del Boca & Christopher Flinn, 2012.
"Household Behavior and the Marriage Market,"
2012-013, Human Capital and Economic Opportunity Working Group.
- Del Boca, Daniela & Flinn, Christopher, 2013. "Household Behavior and the Marriage Market," IZA Discussion Papers 7681, Institute for the Study of Labor (IZA).
- Daniela Del Boca & Christopher J. Flinn, 2012. "Household Behavior and the Marriage Market," Carlo Alberto Notebooks 254, Collegio Carlo Alberto.
- Daniela Del Boca & Christopher J. Flinn, 2005.
"Household Time Allocation and Modes of Behavior: A Theory of Sorts,"
CHILD Working Papers
wp15_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Daniela Del Boca & Christopher J. Flinn, 2005. "Household Time Allocation and Models of Behavior: A Theory of Sorts," Carlo Alberto Notebooks 8, Collegio Carlo Alberto, revised 2006.
- Del Boca, Daniela & Flinn, Christopher, 2005. "Household Time Allocation and Modes of Behavior: A Theory of Sorts," IZA Discussion Papers 1821, Institute for the Study of Labor (IZA).
- Aloysius Siow & Eugene Choo, 2007. "Lifecycle marriage matching: Theory and Evidence," 2007 Meeting Papers 550, Society for Economic Dynamics.
- Iyigun, Murat, 2005. "Bargaining and Specialization in Marriage," IZA Discussion Papers 1744, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If references are entirely missing, you can add them using this form.