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Household behavior and individual autonomy: an extended Lindahl mechanism

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  • Claude d’Aspremont

    ()

  • Rodolphe Dos Santos Ferreira

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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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    References listed on IDEAS

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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.

    More about this item

    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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