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Individual decisions and household demand for consumption and leisure

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  • Chiuri, Maria Concetta

Abstract

The standard microeconomic assumption of a household utility function raises two theoretical problems: it contradicts methodological individualism and it ignores economic phenomena like income and consumption sharing, division of labour, externalities and altruism within a household. This paper reviews two approaches, aggregation theory and more recent non-unitary models, to compare the different properties that household consumption and leisure demands have to satisfy in the two basic contexts. The paper also discusses some recent empirical evidence which seems to encourage further investigation in the non-unitary framework.
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  • Chiuri, Maria Concetta, 2000. "Individual decisions and household demand for consumption and leisure," Research in Economics, Elsevier, vol. 54(3), pages 277-324, September.
  • Handle: RePEc:eee:reecon:v:54:y:2000:i:3:p:277-324
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    Cited by:

    1. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, June.
    2. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
    3. Kaletski, Elizabeth, 2016. "Work versus School? The Effect of Work on Educational Expenditures for Children in Mexico," IZA Discussion Papers 10054, Institute for the Study of Labor (IZA).

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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