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Enlarging the collective model of household behaviour: a revealed preference analysis

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  • d’ASPREMONT Claude

    () (Université catholique de Louvain, CORE, Belgium)

  • DOS SANTOS FERREIRA Rodolphe

    () (Université de Strasbourg)

Abstract

We use a comprehensive model of strategic household behaviour in which the spouses’ expenditure on each public good is decomposed into autonomous spending and coordinated spending à la Lindahl. We obtain a continuum of semi-cooperative regimes parameterized by the relative weights put on autonomous spending, by each spouse and for each public good, nesting full cooperative and non-cooperative regimes as limit cases. Testing is approached through revealed preference analysis, by looking for rationalisability of observed data sets, with the price of each public good lying between the maximum and the sum of the hypothesized marginal willingnesses to pay of the two spouses. Once rationalised, an observed data set always allows to identify the sharing rule, except when both spouses contribute in full autonomy to some public good (a situation of local income pooling).

Suggested Citation

  • d’ASPREMONT Claude & DOS SANTOS FERREIRA Rodolphe, 2017. "Enlarging the collective model of household behaviour: a revealed preference analysis," CORE Discussion Papers 2017017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2017017
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    Keywords

    semi-cooperative household behaviour; revealed preference analysis; rationalisability; sharing rule identification;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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