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Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining

  • Bargain, Olivier
  • Donni, Olivier

We suggest a new methodology to estimate the share of household income accruing to children. The household behavior is represented according to the collective approach. That is, each household member is characterized by specific preferences. Following the principle of the Rothbarth approach, the identification of the children's share requires the observation of adult-specific goods. Our method differs from this traditional approach in that it is compatible with economies of scale as well as with parents' bargaining. We illustrate the method with an application to the French Household Budget Survey.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 56 (2012)
Issue (Month): 4 ()
Pages: 792-813

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Handle: RePEc:eee:eecrev:v:56:y:2012:i:4:p:792-813
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