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How Falsifiable is the Collective Model? A New Test with an Application to Monogamous and Bigamous Households in Burkina Faso

Author

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  • Dauphin, Anyck

    (Université du Québec en Outaouais)

  • Fortin, Bernard

    (Université Laval)

  • Lacroix, Guy

    (Université Laval)

Abstract

Collective rationality is seldom if ever rejected in the literature, raising doubt about its falsifiability. We show that the standard approach to test the collective model with distribution factors may yield misleading inference. We generalize the model and provide an appropriate test procedure to assess its validity. Our new approach extends to households that include more than two decision-makers (e.g., polygamous households, adult children). We investigate household consumption decision-making within monogamous and bigamous households in Burkina Faso. Using the standard testing approach, collective rationality within monogamous households is not rejected. Using our proposed test procedure, collective rationality is however rejected for monogamous households. Furthermore, our test also rejects collective rationality for bigamous households. We conclude that the household efficiency does yield empirically falsifiable restrictions despite being scarcely rejected in the literature.

Suggested Citation

  • Dauphin, Anyck & Fortin, Bernard & Lacroix, Guy, 2015. "How Falsifiable is the Collective Model? A New Test with an Application to Monogamous and Bigamous Households in Burkina Faso," IZA Discussion Papers 9002, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9002
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    Cited by:

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    2. Jennifer Golan & Alessia Isopi, 2022. "Bargaining Power and Inheritance Norms: Evidence from Polygamous Households in Nigeria," Economics Discussion Paper Series 2209, Economics, The University of Manchester.
    3. Vellore Arthi & James Fenske, 2018. "Polygamy and child mortality: Historical and modern evidence from Nigeria’s Igbo," Review of Economics of the Household, Springer, vol. 16(1), pages 97-141, March.

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    More about this item

    Keywords

    rationality; distribution factors; collective model; efficiency; polygamy;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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