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A Collective Model of Household Behavior with Private Public Goods: Theory and Some Evidence from U.S. Data


  • Olivier Donni


In the present paper, we adopt the collective approach to consumer behavior - which supposes that each household member is characterized by his/her own preferences and that the decision process results in Pareto-efficient outcomes - and assume, in addition, that agents are egoistic and consumption is either private or public. The main results are based on a conditional demand ("m-demand") framework in which household demands are directly derived from the marginal rates of substitution. We show that (i) household demands have to satisfy testable constraints and (ii) some elements of the decision process can be retrieved from observed behavior. These theoretical considerations are followed by an empirical application using the U.S. Consumer Expenditure Survey. Overall, it turns out that the data are consistent with the theoretical model.

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  • Olivier Donni, 2004. "A Collective Model of Household Behavior with Private Public Goods: Theory and Some Evidence from U.S. Data," DELTA Working Papers 2004-04, DELTA (Ecole normale supérieure).
  • Handle: RePEc:del:abcdef:2004-04

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    References listed on IDEAS

    1. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," World Bank Research Observer, World Bank Group, vol. 10(1), pages 1-19, February.
    2. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-1096, December.
    3. Olivier Donni, 2007. "Collective female labour supply: theory and application," Economic Journal, Royal Economic Society, vol. 117(516), pages 94-119, January.
    4. Olivier Donni, 2004. "A Collective Model of Household Behavior with Private and Public Goods: Theory and Evidence from US Data," Econometric Society 2004 Latin American Meetings 26, Econometric Society.
    5. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    6. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
    7. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    8. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    9. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
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