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Cooperative Household Models

Author

Listed:
  • Apps, Patricia

    (University of Sydney)

  • Rees, Ray

    (University of Munich)

Abstract

We set out a general framework for cooperative household models, based on Samuelson's idea of a household welfare function, but extending it to incorporate the key insight from Nash bargaining models – the idea that the household’s preference ordering over the utility profiles of its members depends on their wage rates (or prices more generally) and non-wage incomes. Applying reasonable general restrictions on the effects of changes in these variables allows derivation of the general implications of cooperative models.

Suggested Citation

  • Apps, Patricia & Rees, Ray, 2007. "Cooperative Household Models," IZA Discussion Papers 3127, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3127
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    References listed on IDEAS

    as
    1. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    2. Apps, P. F. & Rees, R., 1996. "Labour supply, household production and intra-family welfare distribution," Journal of Public Economics, Elsevier, vol. 60(2), pages 199-219, May.
    3. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
    4. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    5. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-748, October.
    6. Pollak, Robert A, 1977. "Price Dependent Preferences," American Economic Review, American Economic Association, vol. 67(2), pages 64-75, March.
    7. Paul A. Samuelson, 1956. "Social Indifference Curves," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 1-22.
    8. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    9. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-955, July.
    10. Apps, Patricia F. & Rees, Ray, 1988. "Taxation and the household," Journal of Public Economics, Elsevier, vol. 35(3), pages 355-369, April.
    11. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
    12. Vermeulen, Frederic, 2002. "Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-564, September.
    13. Apps, Patricia & Rees, Ray, 2001. "Household production, full consumption and the costs of children," Labour Economics, Elsevier, vol. 8(6), pages 621-648, December.
    14. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
    15. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-349, June.
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    Citations

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    Cited by:

    1. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    2. Nabanita Datta Gupta & Leslie Stratton, 2010. "Examining the impact of alternative power measures on individual time use in American and Danish couple households," Review of Economics of the Household, Springer, vol. 8(3), pages 325-343, September.
    3. Chandra Bhat & Konstadinos Goulias & Ram Pendyala & Rajesh Paleti & Raghuprasad Sidharthan & Laura Schmitt & Hsi-Hwa Hu, 2013. "A household-level activity pattern generation model with an application for Southern California," Transportation, Springer, vol. 40(5), pages 1063-1086, September.
    4. Datta Gupta, Nabanita & Stratton, Leslie S., 2008. "Institutions, Social Norms, and Bargaining Power: An Analysis of Individual Leisure Time in Couple Households," IZA Discussion Papers 3773, Institute of Labor Economics (IZA).
    5. Patricia Apps & Ray Rees, 2010. "Testing the Pareto Efficiency of Household Resource Allocations," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 13(2-1), pages 57-68, Winter-Su.
    6. Diana Tam & Arthur Grimes, 2023. "Migration of dual-earner couples: a subjective wellbeing approach," Review of Economics of the Household, Springer, vol. 21(1), pages 269-289, March.
    7. Junya Hamaaki & Masahiro Hori & Keiko Murata, 2019. "The intra-family division of bequests and bequest motives: empirical evidence from a survey on Japanese households," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 309-346, January.
    8. Keane, Claire & Callan, Tim & Walsh, John, 2015. "Gender Impact of Tax and Benefit Changes: A Microsimulation Approach," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT275, June.
    9. Patricia Apps & Ray Rees, 2007. "Household Models: An Historical Perspective," CESifo Working Paper Series 2172, CESifo.

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    More about this item

    Keywords

    generalisation; household; model;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General

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