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|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Orazio Attanasio & Valerie Lechene, 2002.
"Tests of Income Pooling in Household Decisions,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 720-748, October.
- Valerie Lechene & Orazio Attanasio, 2002. "Tests of Income Pooling in Household Decisions," Economics Series Working Papers 106, University of Oxford, Department of Economics.
- Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
- Pierre-André Chiappori & Bernard Fortin & Guy Lacroix, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," CIRANO Working Papers 2001s-16, CIRANO.
- 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.
- Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
- Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
- Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
- Keen, Michael, 1986. "Zero Expenditures and the Estimation of Engel Curves," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 277-286, July. Full references (including those not matched with items on IDEAS)