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Let's Talk About the Money: Spousal Communication, Expenditures, and Farm Production

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  • Joyce J. Chen
  • LaPorchia A. Collins

Abstract

A burgeoning body of literature highlights asymmetric information among household members. However, little is known about the source of the asymmetry and its effect on efficiency. Using a unique survey of Ghanaian households, we examine the accuracy of spousal cross reports and the effect of discrepancies on farm production. We find that information problems pertain to scale (the quantity of resources) and scope (the distribution of resources), as well as allocation decisions on the margin (Engel curves). Moreover, we find that information asymmetries lead to inefficiency in production, and the effect is equivalent to about 15% of the variation across households.

Suggested Citation

  • Joyce J. Chen & LaPorchia A. Collins, 2014. "Let's Talk About the Money: Spousal Communication, Expenditures, and Farm Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1272-1290.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:5:p:1272-1290.
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    File URL: http://hdl.handle.net/10.1093/ajae/aau059
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    Cited by:

    1. Krumbiegel, Katharina & Maertens, Miet & Wollni, Meike, "undated". "Modern agri-food systems, horticultural employment and women's empowerment," GlobalFood Discussion Papers 257241, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Deschênes, Sarah & Dumas, Christelle & Lambert, Sylvie, 2020. "Household resources and individual strategies," World Development, Elsevier, vol. 135(C).
    3. Castilla, Carolina, 2019. "What's yours is mine, and what's mine is mine: Field experiment on income concealing between spouses in India," Journal of Development Economics, Elsevier, vol. 137(C), pages 125-140.
    4. Anna Josephson, 2021. "Intra-Household Management of Joint Resources: Evidence from Malawi," Papers 2112.12766, arXiv.org, revised Apr 2022.
    5. Anna Josephson, 2025. "Intra-household management of resources: evidence from Malawi," Review of Economics of the Household, Springer, vol. 23(1), pages 165-194, March.
    6. Lambrecht, Isabel Brigitte, 2016. "“As a Husband I Will Love, Lead, and Provide.” Gendered Access to Land in Ghana," World Development, Elsevier, vol. 88(C), pages 188-200.
    7. Ambler, Kate & Doss, Cheryl & Kieran, Caitlin & Passarelli, Simone, 2022. "Spousal concordance in joint and separate households: Survey evidence from Nepal," World Development, Elsevier, vol. 151(C).
    8. Lambrecht, Isabel B., 2016. "“As a husband I will love, lead, and provide†: Gendered access to land in Ghana," IFPRI discussion papers 1514, International Food Policy Research Institute (IFPRI).
    9. Debosree Banerjee & Stephan Klasen, 2022. "Conditional cash transfers to mothers, intrahousehold allocations: the role of unobservability," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 275-296, February.
    10. Masselus, Lise & Fiala, Nathan, 2024. "Whom to ask? Testing respondent effects in household surveys," Journal of Development Economics, Elsevier, vol. 168(C).
    11. Nicholas Magnan & Abby M. Love & Fulgence J. Mishili & Ganna Sheremenko, 2020. "Husbands’ and wives’ risk preferences and improved maize adoption in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 743-758, September.
    12. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
    13. Fiala, Nathan & Masselus, Lise, 2022. "Whom to ask? Testing respondent effects in household surveys," Ruhr Economic Papers 935, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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