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

Author

Listed:
  • 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.

Suggested Citation

  • Tomoki Fujii & Ryuichiro Ishikawa, 2012. "A note on separability and intra-household resource allocation in a collective household model," Working Papers 06-2012, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:06-2012
    as

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    References listed on IDEAS

    as
    1. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    2. repec:hal:spmain:info:hdl:2441/f0uohitsgqh8dhk9820172631 is not listed on IDEAS
    3. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment on experimental data," ULB Institutional Repository 2013/131707, ULB -- Universite Libre de Bruxelles.
    4. Richard Blundell & Jean-Marc Robin, 2000. "Latent Separability: Grouping Goods without Weak Separability," Econometrica, Econometric Society, vol. 68(1), pages 53-84, January.
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    7. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1267-1303.
    8. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
    9. Richard Blundell & Pierre-André Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
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    11. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    12. 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, June.
    13. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2006. "Collective and Unitary Models: A Clarification," Review of Economics of the Household, Springer, vol. 4(1), pages 5-14, March.
    14. 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, June.
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    16. P. Chiappori, 2011. "Collective labor supply with many consumption goods," Review of Economics of the Household, Springer, vol. 9(2), pages 207-220, June.
    17. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data," Review of Economics of the Household, Springer, vol. 10(3), pages 395-421, September.
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    Cited by:

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    2. Mizuki Komura, 2013. "Tax reform and endogenous gender bargaining power," Review of Economics of the Household, Springer, vol. 11(2), pages 175-192, June.
    3. Swallow, Kimberly A. & Swallow, Brent M., 2015. "Explicitly integrating institutions into bioeconomic modeling:," IFPRI discussion papers 1420, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Collective model; Intro-household resource allocation; Bargaining; Separability;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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