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Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power

Author

Listed:
  • Martin Browning

    (Institute of Economics, University of Copenhagen)

  • Pierre-André Chiappori

    (Department of Economics, University of Chicago)

  • Arthur Lewbel

    (Department of Economics, Boston College)

Abstract

How much income would a woman living alone require to attain the same standard of living that she would have if she were married? What percentage of a married couple’s expenditures are controlled by the husband? How much money does a couple save on consumption goods by living together versus living apart? We propose and estimate a collective model of household behavior that permits identification and estimation of concepts such as these. We model households in terms of the utility functions of its members, a bargaining or social welfare function, and a consumption technology function. We demonstrate generic nonparametric identification of the model, and hence of equivalence scales, consumption economies of scale, household members’ bargaining power and other related concepts.

Suggested Citation

  • Martin Browning & Pierre-André Chiappori & Arthur Lewbel, "undated". "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003.
  • Handle: RePEc:kud:kuieca:2003_12
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    consumer demand; collective model; adult equivalence scales; household bargaining; economies of scale; demand systems; bargaining power; Barten scales;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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