Household behavior and individual autonomy: an extended Lindahl mechanism

Author

Listed:
• Claude d’Aspremont

()

• Rodolphe Dos Santos Ferreira

()

Abstract

We present a comprehensive model of household economic decision covering both full cooperation and noncooperation as well as semi-cooperative cases, varying with income distribution and a parameter vector $$\theta$$ θ representing degrees of individual autonomy with respect to the public goods. In this model, the concept of “household $$\theta$$ θ -equilibrium” is introduced through the reformulation of the Lindahl equilibrium for Nash implementation and its extension to semi-cooperation. Existence is proved and some generic properties derived. An example is given to illustrate. An important benefit of this approach is to allow for a compact and unified investigation of the testable (local) restrictions of household demand. A particular decomposition of the pseudo-Slutsky matrix is derived and the testability of the various models discussed. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

• Claude d’Aspremont & Rodolphe Dos Santos Ferreira, 2014. "Household behavior and individual autonomy: an extended Lindahl mechanism," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 643-664, April.
• Handle: RePEc:spr:joecth:v:55:y:2014:i:3:p:643-664
DOI: 10.1007/s00199-013-0763-1
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File URL: http://hdl.handle.net/10.1007/s00199-013-0763-1

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References listed on IDEAS

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Citations

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Cited by:

1. Clémentine Sadania, 2016. "Working and Women’s Empowerment in the Egyptian Household: The Type of Work and Location Matter," Working Papers halshs-01525220, HAL.

Keywords

Intra-household allocation; Household financial management; Degree of autonomy; Lindahl prices; Local income pooling; Separate spheres; D11; C72; H41;

JEL classification:

• D10 - Microeconomics - - Household Behavior - - - General
• C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
• H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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