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Enlarging the collective model of household behavior: A revealed preference analysis

Author

Listed:
  • Claude d’Aspremont

    () (CORE, Université Catholique de Louvain)

  • Rodolphe Dos Santos Ferreira

    () (Université de Strasbourg
    Católica Lisbon School of Business and Economics)

Abstract

We use a comprehensive model of strategic household behavior in which the spouses’ expenditure on each public good is decomposed into autonomous spending and coordinated spending à la Lindahl. We obtain a continuum of semi-cooperative regimes parameterized by the relative weights put on autonomous spending, by each spouse and for each public good, nesting full cooperative and noncooperative regimes as limit cases. Testing is approached through revealed preference analysis, by looking for rationalizability of observed data sets, with the price of each public good lying between the maximum and the sum of the hypothesized marginal willingness to pay of the two spouses. Once rationalized, an observed data set always allows to identify the sharing rule, except when both spouses contribute in full autonomy to some public good (a situation of local income pooling).

Suggested Citation

  • Claude d’Aspremont & Rodolphe Dos Santos Ferreira, 2019. "Enlarging the collective model of household behavior: A revealed preference analysis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(1), pages 1-19, July.
  • Handle: RePEc:spr:joecth:v:68:y:2019:i:1:d:10.1007_s00199-018-1110-3
    DOI: 10.1007/s00199-018-1110-3
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    More about this item

    Keywords

    Semi-cooperative household behavior; Revealed preference analysis; Rationalizability; Sharing rule identification;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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