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Is the Japanese Extended Family Altruistically Linked? A Test Based on Engel Curves

  • Hayashi, Fumio

Altruism has the well-known neutrality implication that the family's demand for commodities is invariant to the division of resources within the family. The author tests this by estimating Engel curves on a cross section of Japanese extended families forming two-generation households. He finds that the pattern of food expenditure is significantly affected by the division of resources. The food components whose budget share increases with the older generation's share of household income are precisely those favored by the old, such as cereal, seafood, and vegetables. Copyright 1995 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 103 (1995)
Issue (Month): 3 (June)
Pages: 661-74

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Handle: RePEc:ucp:jpolec:v:103:y:1995:i:3:p:661-74
Contact details of provider: Web page: http://www.journals.uchicago.edu/JPE/

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  1. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December.
  2. Fumio Hayashi, 1984. "The Permanent Income Hypothesis and Consumption Durability: Analysis Based on Japanese Panel Data," NBER Working Papers 1305, National Bureau of Economic Research, Inc.
  3. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-51, July.
  4. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  5. Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
  6. Fumio Hayashi, 1995. "Is the Japanese Extended Family Altruistically Linked? A Test based on Engel Curves," NBER Working Papers 5033, National Bureau of Economic Research, Inc.
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