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Household behavior and individual autonomy

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  • Claude d’Aspremont
  • Rodolphe Dos Santos Ferreira

Abstract

The paper proposes a model of household behavior with both private and public consumption where the spouses independently maximize their utilities, but taking into account, together with their own individual budget constraints, the collective household budget constraint with public goods evaluated at Lindahl prices. The Lagrange multipliers associated with these constraints are used to parameterize the set of equilibria, in addition to the usual parameterization by income shares. The proposed game generalizes both the ‘collective’ model of household behavior and the non-cooperative game with voluntary contributions to public goods.

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File URL: http://www.beta-umr7522.fr/productions/publications/2009/2009-17.pdf
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Bibliographic Info

Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2009-17.

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Date of creation: 2009
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Handle: RePEc:ulp:sbbeta:2009-17

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Related research

Keywords: Intra-household allocation; household financial management; degree of autonomy; Lindahl prices; local income pooling; separate spheres.;

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References

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  1. Martin Browning & Valerie Lechene & Pierre-Andre Chiappori, 2006. "Distributional effects in household models: separate spheres and income pooling," Economics Series Working Papers 293, University of Oxford, Department of Economics.
  2. Valérie Lechene & Ian Preston, 2008. "Non cooperative household demand," IFS Working Papers W08/14, Institute for Fiscal Studies.
  3. Claude d'Aspremont & Rodolphe Dos Santos Ferreira & Louis-André Gérard-Varet, 2007. "Competition For Market Share Or For Market Size: Oligopolistic Equilibria With Varying Competitive Toughness," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 761-784, 08.
  4. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
  5. Pahl, Jan, 2008. "Family finances, individualisation, spending patterns and access to credit," The Journal of Socio-Economics, Elsevier, vol. 37(2), pages 577-591, April.
  6. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2004. "Collective and Unitary Models: a Clarification," CAM Working Papers 2004-15, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  7. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  8. d'Aspremont, Claude & Dos Santos Ferreira, Rodolphe, 2009. "Price-quantity competition with varying toughness," Games and Economic Behavior, Elsevier, vol. 65(1), pages 62-82, January.
  9. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics.
  10. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  11. Valerie Lechene & Ian Preston, 2005. "Household Nash Equilibrium with Voluntarily Contributed Public Goods," Economics Series Working Papers 226, University of Oxford, Department of Economics.
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Citations

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Cited by:
  1. Cherchye, L.J.H. & Demuynck, T. & Rock, B. de, 2009. "Degrees of Cooperation in Household Consumption Models: A Revealed Preference Analysis," Discussion Paper 2009-91, Tilburg University, Center for Economic Research.
  2. Marie-Louise Leroux & Grégory Ponthière, 2009. "Wives, husbands and wheelchairs: Optimal tax policy under gender-specific health," Working Papers halshs-00575059, HAL.
  3. Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram, 2011. "The empirical content of Cournot competition," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/308179, Katholieke Universiteit Leuven.
  4. Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram, 2010. "Noncooperative household consumption with caring," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/289289, Katholieke Universiteit Leuven.
  5. LEROUX, Marie - Louise & PONTHIERE, Grégory, 2009. "Wives, husbands and wheelchairs : Optimal tax policy under gender-specific health," CORE Discussion Papers 2009071, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Miriam Beblo & Denis Beninger, 2012. "Do husbands and wives pool their incomes? Experimental evidence," Working Papers of BETA 2012-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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