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Non cooperative household demand

  • Valérie Lechene

    (Institute for Fiscal Studies and University College London)

  • Ian Preston

    ()

    (Institute for Fiscal Studies and University College London)

We study non cooperative household models with two agents and several voluntarily contributed public goods, deriving the counterpart to the Slutsky matrix and demonstrating the nature of the deviation of its properties from those of a true Slutsky matrix in the unitary model. We provide results characterising both cases in which there are and are not jointly contributed public goods. Demand properties are contrasted with those for collective models and conclusions drawn regarding the possibility of empirically testing the collective model against non cooperative alternatives and the non cooperative model against a general alternative.

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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W10/18.

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Date of creation: Sep 2010
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Handle: RePEc:ifs:ifsewp:10/18
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