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A note on separability and intra-household resource allocation in a collective household model

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  • Tomoki Fujii

    ()
    (School of Economics, Singapore Management Unversity)

  • Ryuichiro Ishikawa

    ()
    (University of Tsukuba)

Abstract

We consider a collective model of a household in which earn member has a utility function satisfying the weak separability condition. We show that the separability at the individual level carries over to the household level and that the allocation of private goods in any Pareto-efficient allocation can be supported as a Pareto-efficient allocation of the private sub-problem. We also provide the necessary and sufficient condition for the Pareto weight for the private sub-problem to move in the same direction as the household Pareto weight.

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Bibliographic Info

Paper provided by Singapore Management University, School of Economics in its series Working Papers with number 06-2012.

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Length: 8 pages
Date of creation: Mar 2012
Date of revision:
Publication status: Published in SMU Economics and Statistics Working Paper Series
Handle: RePEc:siu:wpaper:06-2012

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Keywords: Collective model; Intro-household resource allocation; Bargaining; Separability;

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References

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  1. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
  2. Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, 06.
  3. Richard Blundell & Robin, J M, 1995. "Latent separability: grouping goods without weak separability," IFS Working Papers W95/09, Institute for Fiscal Studies.
  4. Valerie Lechene & Martin Browning, 2004. "Collective and unitary models: a clarification," Economics Series Working Papers 191, University of Oxford, Department of Economics.
  5. Pierre-André Chiappori & Richard Blundell & Costas Meghir, 2002. "Collective labour supply with children," IFS Working Papers W02/08, Institute for Fiscal Studies.
  6. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
  7. Tomoki Fujii & Ryuichiro Ishikawa, 2013. "How Does Childbirth Alter Intrahousehold Resource Allocation? Evidence from Japan," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 362-387, 06.
  8. Weiss, Yoram & Sharir, Shmuel, 1978. "A Composite Good Theorem for Simple Sum Aggregates," Econometrica, Econometric Society, vol. 46(6), pages 1499-1501, November.
  9. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  10. Christina Peters, 2011. "Effects of family planning and health services on women’s welfare: evidence on dowries and intra-household bargaining in Bangladesh," Review of Economics of the Household, Springer, vol. 9(3), pages 327-348, September.
  11. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  12. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  13. P. Chiappori, 2011. "Collective labor supply with many consumption goods," Review of Economics of the Household, Springer, vol. 9(2), pages 207-220, June.
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Cited by:
  1. Mizuki Komura, 2013. "Tax reform and endogenous gender bargaining power," Review of Economics of the Household, Springer, vol. 11(2), pages 175-192, June.

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