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Inefficient Collective Households: Cooperation and Consumption

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  • Arthur Lewbel
  • Krishna Pendakur

Abstract

We propose a model of consumption inefficiency in collective households. Inefficiency depends on a ‘cooperation factor’, which can also affect both the allocation of resources within a household and the utility of household members. Households are conditionally efficient, conditioning on the value of the cooperation factor. This lets us exploit convenient modelling features of efficient households (like not needing to specify the bargaining process), while still accounting for, and measuring the dollar cost of, inefficient levels of cooperation.

Suggested Citation

  • Arthur Lewbel & Krishna Pendakur, 2022. "Inefficient Collective Households: Cooperation and Consumption," The Economic Journal, Royal Economic Society, vol. 132(645), pages 1882-1893.
    • Handle: RePEc:oup:econjl:v:132:y:2022:i:645:p:1882-1893.
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    File URL: http://hdl.handle.net/10.1093/ej/ueab099
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    Cited by:

    1. Arthur Lewbel & Krishna Pendakur, 2024. "Estimating a model of inefficient cooperation and consumption in collective households," Review of Economics of the Household, Springer, vol. 22(3), pages 865-907, September.
    2. Ulugbek Aminjonov & Maira Colacce & Olivier Bargain & Luca Tiberti, 2024. "Culture, Intrahousehold Distribution, and Individual Poverty," Economic Development and Cultural Change, University of Chicago Press, vol. 73(1), pages 127-165.
    3. Xiangdan Piao, 2023. "Intra-Household Income Management and Couple’s Relative Sharing of Income and Environment Sustainability in Japan," Sustainability, MDPI, vol. 15(7), pages 1-17, April.
    4. Richard Blundell & Heidi Karjalainen & Valérie Lechene & Krishna Pendakur, 2025. "Gender inequality in expenditure: Great Britain 1978 to 2019," IFS Working Papers W25/26, Institute for Fiscal Studies.
    5. Zhi Cao & Arthur Lewbel & Wenchao Li & Junjian Yi, 2024. "Collective Behavior with Information Asymmetry," Boston College Working Papers in Economics 1070, Boston College Department of Economics, revised 31 Aug 2024.
    6. NIKIEMA, Relwendé Apollinaire, 2024. "Intrahousehold Consumption Inequality, Economies of Scale, Indifference Scales, and Family Structure," IDE Discussion Papers 915, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Jean-Paul Chavas & Eleonora Matteazzi & Martina Menon & Federico Perali, 2025. "How Do Family Members Negotiate to Reach a Bargaining Agreement? A Study of Intrahousehold Behavior," CHILD Working Papers Series 125 JEL Classification: D, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    8. Bargain, Olivier B. & Colacce, Maira, 2025. "Gender-Targeted Transfers and Women’s Consumption: A Structural Regression Discontinuity Approach," IZA Discussion Papers 17768, IZA Network @ LISER.
    9. Alem, Yonas & Schürz, Simon, 2025. "Parental Decision-Making and Educational Investments: The Intergenerational Cost of Noncooperation," EfD Discussion Paper 25-8, Environment for Development, University of Gothenburg.
    10. Bose-Duker,Theophiline & Gaddis,Isis & Kilic,Talip & Lechene,Valérie & Pendakur,Krishna, 2021. "Diamonds in the Rough? : Repurposing Multi-Topic Surveys to Estimate Individual-Level Consumption Poverty," Policy Research Working Paper Series 9661, The World Bank.
    11. Calvi, Rossella & Penglase, Jacob & Tommasi, Denni & Wolf, Alexander, 2023. "The more the poorer? Resource sharing and scale economies in large families," Journal of Development Economics, Elsevier, vol. 160(C).
    12. Olivier Bargain, 2024. "Income sources, intrahousehold allocation and individual poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(2), pages 291-319, June.

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • 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
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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