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Is power more evenly balanced in poor households?

  • Couprie Helene
  • Peluso Eugenio
  • Trannoy Alain

    ()

    (THEMA, Université de Cergy-Pontoise.
    Dipartimento di Scienze Economiche, Università di Verona (Italy). EHESS, GREQAM-IDEP, Centre de la Vieille Charité, Marseille.)

The structure of intra-household allocation is crucial to know whether a transfer from a rich household to a poor one translates into a transfer from a rich individual to a poor one. If rich households are more unequal than poor ones, then a progressive transfer among households reduces intra-household inequality, hence inequality among individuals. More speci cally, two conditions have to be satis ed for extending Generalized Lorenz judgments from household level to individual one. The fraction of the couple’s expenditures devoted to goods jointly consumed should decrease at the margin with the couple’s income as well as the part of private expenditure devoted to the disadvantaged individual. This double concavity condition is non-parametrically tested on the French Household Expenditure Survey (2000). It is not rejected by the data and support the view that power is more evenly distributed in poor households.

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Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2009-11.

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Date of creation: 2009
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Handle: RePEc:ema:worpap:2009-11
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  1. Helene Couprie & Eugenio Peluso & Alain Trannoy, 2007. "From Household to Individual Welfare Comparisons: A Double Concavity Test," IDEP Working Papers 0701, Institut d'economie publique (IDEP), Marseille, France, revised 01 2007.
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  23. Olivier Donni, 2009. "A Simple Approach to Investigate Intrahousehold Allocation of Private and Public Goods," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 617-628, August.
  24. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003.
  25. Martin Browning & Pierre-Andre Chiappori, 2006. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Economics Series Working Papers 289, University of Oxford, Department of Economics.
  26. Eugenio Peluso & Alain Trannoy, 2009. "Poverty orderings and intra-household inequality: The Lost Axiom," Journal of Income Distribution, Journal of Income Distribution, vol. 18(3-4), pages 24-33, September.
  27. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  28. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
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