IDEAS home Printed from https://ideas.repec.org/p/ags/eaae11/120379.html

The Collective Household Enterprise Model: An Empirical Analysis

Author

Listed:
  • Menon, Martina
  • Perali, Carlo Federico

Abstract

This paper estimates a household model where both the production and consumption sides are observed. The household activities produce both marketable and nonmarketable products. Family members consume market goods, domestically produced goods and leisure. This household equilibrium model is described within a collective framework. The data are from a nation-wide sample of Italian farm-households. The estimation is implemented using a generalized Heckman estimator to account for corner solutions generated by the fact that not all households are engaged in all enterpreneurial activities and do not consume some of all goods and leisure. The identification of the sharing rule stems from the assignability of clothing consumption and leisure.

Suggested Citation

  • Menon, Martina & Perali, Carlo Federico, 2011. "The Collective Household Enterprise Model: An Empirical Analysis," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120379, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:120379
    DOI: 10.22004/ag.econ.120379
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/120379/files/Perali_Federico_694.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.120379?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    2. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
    3. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    4. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
    5. Kaushik Basu, 1999. "International Labor Standards and Child Labor," Challenge, Taylor & Francis Journals, vol. 42(5), pages 80-93, September.
    6. Richard Blundell & Pierre-André Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
    7. Driscoll, Paul J. & Boisvert, Richard N., 1988. "Empirical Implications of Reconciling the Behavioral Assumptions in Dual Models of Production," Working Papers 178696, Cornell University, Department of Applied Economics and Management.
    8. Apps, Patricia F & Rees, Ray, 1997. "Collective Labor Supply and Household Production," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 178-190, February.
    9. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    10. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    11. Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 903-921.
    12. Gustafsson-Wright, Emily & Pyne, Hnin Hnin, 2002. "Gender dimensions of child labor and street children in Brazil," Policy Research Working Paper Series 2897, The World Bank.
    13. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    14. Stephen P. Jenkins & Nigel C. O'Leary, 1996. "Household Income Plus Household Production: The Distribution Of Extended Income In The U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 401-419, December.
    15. Basu, Kaushik & Ray, Ranjan, 2002. "The collective model of the household and an unexpected implication for child labor : hypothesis and an empirical test," Policy Research Working Paper Series 2813, The World Bank.
    16. 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.
    17. John R. Conlon, 1990. "Profit, Supply, and Factor Demand Functions: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 488-492.
    18. repec:bla:revinw:v:42:y:1996:i:4:p:401-19 is not listed on IDEAS
    19. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-349, June.
    20. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-955, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaime Andres Sarmiento Espinel, 2012. "Children and non-participation in a model of collective household labor supply," Serie documentos de trabajo del Centro de Estudios Económicos 2012-14, El Colegio de México, Centro de Estudios Económicos.
    2. Antonella Caiumi & Federico Perali, 2015. "Who bears the full cost of children? Evidence from a collective demand system," Empirical Economics, Springer, vol. 49(1), pages 33-64, August.
    3. Olivier Bargain & Nicolas Moreau, 2002. "Is the collective model of labor supply useful for tax policy analysis ? A simulation exercise," DELTA Working Papers 2002-21, DELTA (Ecole normale supérieure).
    4. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.
    5. Hélène Couprie, 2007. "Time allocation within the Family: Welfare implications of life in a couple," Economic Journal, Royal Economic Society, vol. 117(516), pages 287-305, January.
    6. Benoît Rapoport & Catherine Sofer & Anne Solaz, 2011. "Household production in a collective model: some new results," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 23-45, January.
    7. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2008. "Une analyse du partage intrafamilial du revenu à partir de données subjectives," Economie & Prévision, La Documentation Française, vol. 0(5), pages 101-116.
    8. Olivier Donni & Nicolas Moreau, 2007. "Collective Labor Supply: A Single-Equation Model and Some Evidence from French Data," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    9. Olivier Bargain & Nicolas Moreau, 2006. "Effets d’une réforme fiscale sur l’offre de travail des ménages dans un cadre collectif simulé," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 207-246.
    10. Frederic Vermeulen, 2001. "And the winner is...: an Empirical Evaluation of Two Competing Approaches to Household Labour Supply," Working Papers of Department of Economics, Leuven 500566, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    11. Jaime Andres Sarmiento Espinel & Edwin van Gameren, 2016. "A collective household labor supply model with children and non-participation: Theory and empirical application," Serie documentos de trabajo del Centro de Estudios Económicos 2016-11, El Colegio de México, Centro de Estudios Económicos.
    12. Olivier Donni, 2007. "Collective female labour supply: theory and application," Economic Journal, Royal Economic Society, vol. 117(516), pages 94-119, January.
    13. Benoît Rapoport & Catherine Sofer & Anne Solaz, 2006. "La production domestique dans les modèles collectifs," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 247-269.
    14. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    15. Frederic Vermeulen, 2006. "A collective model for female labour supply with non-participation and taxation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 99-118, February.
    16. James Fenske & Vellore Arthi, 2013. "Labour and Health in Colonial Nigeria," Oxford Economic and Social History Working Papers _114, University of Oxford, Department of Economics.
    17. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    18. Donni, Olivier, 2008. "Labor supply, home production, and welfare comparisons," Journal of Public Economics, Elsevier, vol. 92(7), pages 1720-1737, July.
    19. Chau, Tak Wai & Li, Hongbin & Liu, Pak Wai & Zhang, Junsen, 2007. "Testing the collective model of household labor supply: Evidence from China," China Economic Review, Elsevier, vol. 18(4), pages 389-402.
    20. Olivier Donni, 2004. "A Collective Model of Household Behavior with Private and Public Goods: Theory and Evidence from US Data," Econometric Society 2004 Latin American Meetings 26, Econometric Society.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:120379. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.