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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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  1. Keeley, Michael C, et al, 1978. "The Estimation of Labor Supply Models Using Experimental Data," American Economic Review, American Economic Association, vol. 68(5), pages 873-887, December.
  2. repec:adr:anecst:y:1993:i:29:p:07 is not listed on IDEAS
  3. Chiappori, Pierre-Andre & Haddad, Lawrence & Hoddinott, John & Kanbur, Ravi, 1993. "Unitary versus collective models of the household : time to shift theburden of proof?," Policy Research Working Paper Series 1217, The World Bank.
  4. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
  5. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1, June.
  6. François Bourguignon & Martin Browning & Pierre-André Chiappori & Valérie Lechene, 1993. "Intra Household Allocation of Consumption: A Model and some Evidence from French Data," Annals of Economics and Statistics, GENES, issue 29, pages 137-156.
  7. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  8. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
  9. repec:adr:anecst:y:1993:i:29 is not listed on IDEAS
  10. Paul A. Samuelson, 1956. "Social Indifference Curves," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 1-22.
  11. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
  12. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  13. Bergstrom, Theodore C, 1989. "A Fresh Look at the Rotten Kid Theorem--and Other Household Mysteries," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1138-1159, October.
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