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The Collective Household Enterprise Model: An Empirical Analysis

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  • 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
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    References listed on IDEAS

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    6. 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.
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    8. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
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    12. 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.
    13. 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.
    14. Jenkins, Stephen P & O'Leary, Nigel C, 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. 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.
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    Keywords

    Household collective model; household and domestic productions; consumption and leisure; separability; Consumer/Household Economics;

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