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Estimating a collective household model with survey data on financial satisfaction

Author

Listed:
  • Rob Alessie

    (Institute for Fiscal Studies)

  • Thomas Crossley

    (Institute for Fiscal Studies and University of Essex and European University Institute)

  • Vincent Hildebrand

    (Institute for Fiscal Studies)

Abstract

We estimate a collective household model with survey data on financial satisfaction from the European Community Household Panel. Our estimates suggest that cohabitating individuals enjoy returns to scale in consumption that are towards the larger end of the range of estimates reported in the literature. They also suggest that the share of household income provided by the female partner is a significant determinant of her share of household consumption in most countries of the countries we study.

Suggested Citation

  • Rob Alessie & Thomas Crossley & Vincent Hildebrand, 2006. "Estimating a collective household model with survey data on financial satisfaction," IFS Working Papers W06/19, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:06/19
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    References listed on IDEAS

    as
    1. Jeremy Lise & Shannon Seitz, 2011. "Consumption Inequality and Intra-household Allocations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 328-355.
    2. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2006. "Collective and Unitary Models: A Clarification," Review of Economics of the Household, Springer, vol. 4(1), pages 5-14, March.
    3. Johannes Schwarze, 2003. "Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 359-372, September.
    4. Das, Marcel & van Soest, Arthur, 1997. "Expected and realized income changes: Evidence from the Dutch socio-economic panel," Journal of Economic Behavior & Organization, Elsevier, vol. 32(1), pages 137-154, January.
    5. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    6. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    7. Frederic Vermeulen, 2002. "Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-564, September.
    8. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1267-1303.
    9. Shelley A. Phipps & Peter S. Burton, 1995. "Sharing within Families: Implications for the Measurement of Poverty among Individuals in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 28(1), pages 177-204, February.
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    12. Jens Bonke & Martin Browning, 2003. "The Distribution of Well-Being and Income within the Household," CAM Working Papers 2003-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    13. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
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    15. Lise, Jeremy & Seitz, Shannon, 2004. "Consumption Inequality and Intra-Household Allocations," Queen's Economics Department Working Papers 273455, Queen's University - Department of Economics.
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    Cited by:

    1. Bargain, Olivier & González, Libertad & Keane, Claire & Özcan, Berkay, 2012. "Female labor supply and divorce: New evidence from Ireland," European Economic Review, Elsevier, vol. 56(8), pages 1675-1691.
    2. María Navarro, 2019. "Financial, Job and Health Satisfaction: A Comparative Approach on Working People," Societies, MDPI, vol. 9(2), pages 1-17, April.
    3. Susanne Elsas, 2016. "Income Sharing within Households: Evidence from Data on Financial Satisfaction," Social Sciences, MDPI, vol. 5(3), pages 1-16, September.
    4. Menon, Martina & Pendakur, Krishna & Perali, Federico, 2012. "On the expenditure-dependence of children’s resource shares," Economics Letters, Elsevier, vol. 117(3), pages 739-742.
    5. de Ree, Joppe & Alessie, Rob & Pradhan, Menno, 2013. "The price and utility dependence of equivalence scales: Evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 97(C), pages 272-281.
    6. Namkee Ahn & Victoria Ateca-Amestoy & Arantza Ugidos, 2014. "Financial Satisfaction from an Intra-Household Perspective," Journal of Happiness Studies, Springer, vol. 15(5), pages 1109-1123, October.

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    More about this item

    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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