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Are Intra-Household Allocations Efficient?

  • Aguero, Jorge M.

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.

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File URL: http://purl.umn.edu/22061
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22061.

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Date of creation: 2003
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Handle: RePEc:ags:aaea03:22061
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  1. 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.
  2. Valerie Lechene & Orazio Attanasio, 2002. "Tests of Income Pooling in Household Decisions," Economics Series Working Papers 106, University of Oxford, Department of Economics.
  3. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  4. 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.
  5. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
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