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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. 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.
  2. 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.
  3. John K. Dagsvik & Ane S. Flaatten & Helge Brunborg, 1998. "A Behavioral Two-Sex Marriage Model," Discussion Papers 238, Research Department of Statistics Norway.
  4. S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000. "On the State of the Union," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 213-244, April.
  5. Daniela Del Boca & Christopher J. Flinn, 2006. "Modes of Spousal Interaction and the Labor Market Environment," Carlo Alberto Notebooks 14, Collegio Carlo Alberto.
  6. 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.
  7. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," NBER Working Papers 11268, National Bureau of Economic Research, Inc.
  8. Matthew Dey & Christopher Flinn, 2007. "Household Search and Health Insurance Coverage," Carlo Alberto Notebooks 56, Collegio Carlo Alberto.
  9. 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.
  10. Del Boca, Daniela & Flinn, Christopher J, 1995. "Rationalizing Child-Support Decisions," American Economic Review, American Economic Association, vol. 85(5), pages 1241-62, December.
  11. 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.
  12. 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.
  13. Jeremy Greenwood & Nezih Guner & and John Knowles, 1999. "More on marriage, fertility, and the distribution of income," Working Paper 9904, Federal Reserve Bank of Cleveland.
  14. 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.
  15. Raquel Fernández & Nezih Guner & John Knowles, 2005. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," The Quarterly Journal of Economics, MIT Press, vol. 120(1), pages 273-344, January.
  16. 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.
  17. Flinn, C.J., 1998. "Modes of Interaction Between Divorced Parents," Working Papers 98-04, C.V. Starr Center for Applied Economics, New York University.
  18. Steven Stern & Michael J. Brien & Lee A. Lillard, 1999. "Cohabitation, Marriage, and Divorce in a Model of Match Quality," Virginia Economics Online Papers 322, University of Virginia, Department of Economics.
  19. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  20. 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.
  21. 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.
  22. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  23. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
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