Are Intra-Household Allocations Efficient?
This paper describes two problems when testing the efficiency of intra-household allocations. First, using Monte Carlo simulations I show that the test proposed for efficiency in consumption has a high type-II error, leading to a false acceptance of the hypothesis. Second, I show it is possible that even under asymmetric information the hypothesis of efficiency, incorrectly, cannot be rejected. Finally, I propose a test to account for asymmetric of information.
|Date of creation:||2003|
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- Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001.
"Marriage Market, Divorce Legislation and Household Labor Supply,"
Cahiers de recherche
0103, Université Laval - Département d'économique.
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- Pierre-André Chiappori & Bernard Fortin & Guy Lacroix, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," CIRANO Working Papers 2001s-16, CIRANO.
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Journal of Human Resources,
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"Tests of Income Pooling in Household Decisions,"
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106, University of Oxford, Department of Economics.
- Keen, Michael, 1986. "Zero Expenditures and the Estimation of Engel Curves," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 277-86, July.
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