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Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses

  • Carlsson, Fredrik

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • He, Haoran

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Martinsson, Peter

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Qin, Ping

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Sutter, Matthias

    ()

    (Department of Public Finance, University of Innsbruck)

Many economic decisions are made jointly within households. This raises the question about spouses’ relative influence on joint decisions and the determinants of relative influence. Using a controlled experiment (on inter-temporal choice), we let each spouse first make individual decisions and then make joint decisions with the other spouse. We use a random parameter probit model to measure the relative influence of spouses on joint decisions. In general, husbands have a stronger influence than wives. However, in richer households and when the wife is older than the husband, we find a significantly stronger influence of the wife on joint decisions.

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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 465.

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Length: 28 pages
Date of creation: 17 Aug 2010
Date of revision:
Publication status: Published as Carlsson, Fredrik, Haoran He, Peter Martinsson, Ping Qin and Matthias Sutter, 'Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses' in Journal of Economic Behavior and Organization, 2012, pages 525-536.
Handle: RePEc:hhs:gunwpe:0465
Contact details of provider: Postal:
Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden

Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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