Intra-Household Resource Management Structure and Income-Hiding under Incomplete Information
There is evidence that some multi-person households may withhold income transfers, such as bonuses, gifts, and cash transfers, from other members of the household (Ashraf (2009); Vogler and Pahl, (1994)). In this paper, I show that the incentives to hide income under incomplete information regarding the quantity of resources available to the household differ for three different household resource management structures. I illustrate this with a simple two-stage game. In the first stage, one spouse receives a monetary transfer that is unobserved by her spouse, and she must decide whether to reveal or to hide it. In the second stage, spouses bargain over the allocation of resources between a household good and private expenditure. The three models differ in the resource allocation mechanism that takes place in second stage of the game: housekeeping allowance, independent management, and joint management. Results indicate that when one spouse receives a monetary transfer that is unobservable to her spouse, hiding is more likely to occur in households with a housekeeping allowance contract, compared to independent or joint management. In joint management households, however, a spouse may hide in equilibrium if the change in bargaining power associated with revealing the transfer is not significant enough to compensate for the loss in discretionary expenditure.
|Date of creation:||2010|
|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.:
- Siwan Anderson & Jean-Marie Baland, 2002.
"The Economics of Roscas and Intrahousehold Resource Allocation,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 117(3), pages 963-995.
- Siwan Anderson, 2000. "The Economics of Roscas and Intra-Household Resource Allocation," Econometric Society World Congress 2000 Contributed Papers 1323, Econometric Society.
- Anderson, K.S. & Baland, J-M., 2000. "The Economics of Roscas and Intra-Household Resource Allocation," Discussion Paper 2000-83, Tilburg University, Center for Economic Research.
- Vivian Hoffmann, 2009. "Intrahousehold Allocation of Free and Purchased Mosquito Nets," American Economic Review, American Economic Association, vol. 99(2), pages 236-241, May.
- Valérie Lechene & Ian Preston, 2005. "Household Nash equilibrium with voluntarily contributed public goods," IFS Working Papers W05/06, Institute for Fiscal Studies.
- Valerie Lechene & Ian Preston, 2005. "Household Nash Equilibrium with Voluntarily Contributed Public Goods," Economics Series Working Papers 226, University of Oxford, Department of Economics.
- Marcel Fafchamps & Bereket Kebede, 2006. "Intrahousehold Welfare," Economics Series Working Papers GPRG-WPS-044, University of Oxford, Department of Economics. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61607. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.