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Household Time Allocation and Models of Behavior: A Theory of Sorts

  • Daniela Del Boca
  • Christopher J. Flinn

We make the point that a flexible specification of spousal preferences and household production technology precludes the possibility of using revealed preference data on household time allocations to determine the manner in which spouses interact. Under strong, but standard, assumptions regarding marriage market equilibria, marital sorting patterns can be used essentially as "out of sample" information that allows us to assess whether household behavior is cooperative. We use a sample of households drawn from a recent wave of the Panel Study of Income Dynamics, and find some evidence supporting the view that households behave in a cooperative manner.

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Paper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 8.

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Length: 35 pages
Date of creation: 2005
Date of revision: 2006
Handle: RePEc:cca:wpaper:8
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  1. Daniela Del Boca & Christopher J. Flinn, 2004. "Modes of Spousal Interaction and the Labor Market Environment," CHILD Working Papers wp12_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  2. Raquel Ferndez & Nezih Guner & John Knowles, 2001. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," Penn CARESS Working Papers d3d043317c8e26c4039c21aa0, Penn Economics Department.
  3. Alessandra Fogli & Raquel Fernandez, 2009. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 146-77, January.
  4. Del Boca, Daniela & Flinn, Christopher J, 1995. "Rationalizing Child-Support Decisions," American Economic Review, American Economic Association, vol. 85(5), pages 1241-62, December.
  5. Martin Browning & P.A. Chiappori, 1996. "Efficient Intra-Household Allocations - A General Characterization and Empirical Tests," Discussion Papers 96-10, University of Copenhagen. Department of Economics.
  6. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  7. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
  8. Eugene Choo & Aloysius Siow, 2006. "Who Marries Whom and Why," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 175-201, February.
  9. Greenwood, J. & Guner, N. & Knkwles, J., 1999. "More on Marriage, Fertility, and the Distribution of Income," Papers 9904, London School of Economics - Centre for Labour Economics.
  10. Flinn, C.J., 1998. "Modes of Interaction Between Divorced Parents," Working Papers 98-04, C.V. Starr Center for Applied Economics, New York University.
  11. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
  12. J. Ignacio Garcia-Perez & Silvio Rendon, 2004. "Family job search and consumption: the added worker effect revisited," 2004 Meeting Papers 518, Society for Economic Dynamics.
  13. Bound, John, et al, 1994. "Evidence on the Validity of Cross-Sectional and Longitudinal Labor Market Data," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 345-68, July.
  14. Matthew Dey & Christopher Flinn, 2007. "Household Search and Health Insurance Coverage," Carlo Alberto Notebooks 56, Collegio Carlo Alberto.
  15. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics, revised Oct 2001.
  16. John K. Dagsvik & Ane S. Flaatten & Helge Brunborg, 1998. "A Behavioral Two-Sex Marriage Model," Discussion Papers 238, Statistics Norway, Research Department.
  17. Aiyagari, S.R. & Greenwood, J. & Guner, N., 1999. "On the State of the Union," RCER Working Papers 462, University of Rochester - Center for Economic Research (RCER).
  18. Michael J. Brien & Lee A. Lillard & Steven Stern, 2006. "Cohabitation, Marriage, And Divorce In A Model Of Match Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(2), pages 451-494, 05.
  19. Randall P. Walsh & Murat F. Iyigun, 2004. "Building the Family Nest: A Collective Household Model with Competing Pre-Marital Investments and Spousal Matching," 2004 Meeting Papers 168, Society for Economic Dynamics.
  20. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  21. 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 333-49, June.
  22. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
  23. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
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