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Efficient Intra-Household Allocations and Distribution Factors: Implications and Identification

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Listed:
  • François Bourguignon

    () (PJSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

  • Martin Browning

    (Columbia University [New York])

  • Pierre-André Chiappori

    (University of Oxford [Oxford])

Abstract

This paper provides an exhaustive characterization of testability and identifiability issues in the collective framework in the absence of price variation; it thus provides a theoretical underpinning for a number of empirical works that have been developed recently. We first provide a simple and general test of the Pareto-efficiency hypothesis, which is consistent with all possible assumptions on the private or public nature of goods, all possible consumption externalities between household members, and all types of interdependent individual preferences and domestic production technology. The test is proved to be necessary and sufficient. We then provide conditions for the identification of the sharing rule and the Engel curves of individual household members for a variety of different observational schemes.

Suggested Citation

  • François Bourguignon & Martin Browning & Pierre-André Chiappori, 2009. "Efficient Intra-Household Allocations and Distribution Factors: Implications and Identification," Post-Print halshs-00754386, HAL.
  • Handle: RePEc:hal:journl:halshs-00754386
    DOI: 10.1111/j.1467-937X.2008.00525.x
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754386
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    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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