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Collective consumption: an application to the passive drinking effect

Author

Listed:
  • Martina Menon

    () (University of Verona)

  • Federico Perali

    () (University of Verona)

  • Luca Piccoli

    () (Universitat de les Illes Balears)

Abstract

Abstract This study introduces a new collective complete demand system with individual Engel effects that is easy to estimate and permits undertaking policy analysis at the individual rather than household level. Previous estimations of collective demand were limited to single equations. The empirical application investigates the passive drinking effect, that is, whether consumption of alcohol affects the distribution of resources among household members and their level of wellbeing. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and suggest thought-provoking policy implications.

Suggested Citation

  • Martina Menon & Federico Perali & Luca Piccoli, 2018. "Collective consumption: an application to the passive drinking effect," Review of Economics of the Household, Springer, vol. 16(1), pages 143-169, March.
  • Handle: RePEc:kap:reveho:v:16:y:2018:i:1:d:10.1007_s11150-017-9384-y
    DOI: 10.1007/s11150-017-9384-y
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    References listed on IDEAS

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    Cited by:

    1. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    2. Chavas, Jean-Paul & Menon, Martina & Pagani, Elisa & Perali, Federico, 2018. "Collective household welfare and intra-household inequality," Theoretical Economics, Econometric Society, vol. 13(2), May.
    3. Echeverría, Lucía & Menon, Martina & Perali, Federico & Berges, Miriam, 2019. "Intra-household inequality and child welfare in Argentina," Nülan. Deposited Documents 3051, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

    More about this item

    Keywords

    Collective model; Demand system; Sharing rule; Alcohol consumption; Intra-household resource distribution;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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