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Household behavior and individual autonomy: an extended Lindahl mechanism

Author

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  • d’ASPREMONT, Claude
  • DOS SANTOS FERREIRA, Rodolphe

Abstract

We present a comprehensive model of household economic decision covering both full cooperation and noncooperation as well as semi-cooperative cases, varying with income distribution and a parameter vector $$\theta $$ θ representing degrees of individual autonomy with respect to the public goods. In this model, the concept of “household $$\theta $$ θ -equilibrium” is introduced through the reformulation of the Lindahl equilibrium for Nash implementation and its extension to semi-cooperation. Existence is proved and some generic properties derived. An example is given to illustrate. An important benefit of this approach is to allow for a compact and unified investigation of the testable (local) restrictions of household demand. A particular decomposition of the pseudo-Slutsky matrix is derived and the testability of the various models discussed. Copyright Springer-Verlag Berlin Heidelberg 2014
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • d’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, 2014. "Household behavior and individual autonomy: an extended Lindahl mechanism," LIDAM Reprints CORE 2597, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2597
    Note: In : Economic Theory, 55(3), 643-664, 2014
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    Cited by:

    1. Laurens Cherchye & Sam Cosaert & Thomas Demuynck & Bram De Rock, 2020. "Group Consumption with Caring Individuals," The Economic Journal, Royal Economic Society, vol. 130(627), pages 587-622.
    2. 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.
    3. Clémentine Sadania, 2016. "Working and Women’s Empowerment in the Egyptian Household: The Type of Work and Location Matter," Working Papers halshs-01525220, HAL.
    4. Matthias Doepke & Michèle Tertilt, 2019. "Does female empowerment promote economic development?," Journal of Economic Growth, Springer, vol. 24(4), pages 309-343, December.
    5. Claude d’Aspremont & Rodolphe Dos Santos Ferreira, 2019. "Enlarging the collective model of household behavior: A revealed preference analysis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(1), pages 1-19, July.
    6. Bram De Rock & Tom Potoms & Denni Tommasi, 2022. "Household Responses to Cash Transfers," Economic Development and Cultural Change, University of Chicago Press, vol. 70(2), pages 625-652.

    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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