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Intra-household Resource Allocation and Familial Ties

Listed author(s):
  • Harounan Kazianga
  • Zaki Wahhaj

In this paper, we investigate the link between intra-household resource allocation and familial ties between household members. We show that, within the same geographic, economic and social environments, households where members have `stronger' familial ties (e.g. a nuclear family household) achieve near Pareto efficient allocation of productive resources and Pareto efficient allocation of consumption while households with `weaker' familial ties (e.g. an extended family household) do not. We propose a theoretical model of the household based on the idea that altruism between household members vary with familial ties which generates predictions consistent with the observed empirical patterns.

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File URL: http://www.csae.ox.ac.uk/workingpapers/pdfs/csae-wps-2016-06.pdf
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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2016-06.

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Date of creation: 2016
Handle: RePEc:csa:wpaper:2016-06
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