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Incomes and Outcomes: A structural Model of Intra-Household Allocation

Listed author(s):
  • Browning, M.
  • Bourguignon, F.
  • Chiappori, P.A.
  • Lechene, V.

There is evidence that one cannot treat many-person households as a single decisionmaker. If so, then factors such as the relative incomes of the household members may affect the final allocation decisions made by the household. The authors develop a method of identifying how incomes affect outcomes given conventional family expenditure data. They assume that household decision processes lead to efficient outcomes. The authors apply their method to a sample of Canadian couples with no children. They find that the final allocations of expenditures on each partner depend significantly on their relative incomes and ages and on the level of lifetime wealth. Copyright 1994 by University of Chicago Press.

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Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 92-23.

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Length: 21 pages
Date of creation: 1992
Publication status: Published in Journal of Political Economy, December 1994
Handle: RePEc:del:abcdef:92-23
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