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Household behavior and individual autonomy: A Lindahl approach

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  • Claude d’Aspremont
  • Rodolphe Dos Santos Ferreira

Abstract

A comprehensive model of economic household decision is presented which incorporates both fully cooperative and fully non-cooperative variants, parameterized by the income distribution, as well as a semi-cooperative variant, parameterized in addition by a vector B, representing the degrees of individual autonomy. In this comprehensive model, the concept of "household B-equilibrium" is introduced through the reformulation of the Lindahl equilibrium in strategic terms. Existence is proved and some generic properties of the household B-equilibrium derived. An example is given to illustrate. Finally a particular decomposition of the pseudo-Slutsky matrix is derived and the testability of the various models discussed.

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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 2011-19.

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Date of creation: 2011
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Handle: RePEc:ulp:sbbeta:2011-19

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

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