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Pareto efficient intrahousehold allocations and land rights: evidence from South Africa

Author

Listed:
  • Nicholas Fitzhenry

    (Department of Economic History, London School of Economics)

  • Malcolm Keswell

    (Southern Africa Labour and Development Research Unit & School of Economics, University of Cape Town)

Abstract

We study whether South African farm households participating in a land reform program make Pareto efficient intrahousehold consumption decisions. Using evaluation survey data of beneficiary households participating in South Africa’s Land Redistribution for Agricultural Development (LRAD) program, we estimate and test the unitary and collective models of intrahousehold resource allocation. By estimating the households’ demand function’s responses to the size of land grant transfers going to resident men and women, we find evidence contradicting the income pooling hypothesis of the unitary model. On the other hand, we cannot reject the hypothesis allocations are Pareto efficient. A test based on a linearisation of the demand system also favours Pareto efficiency.

Suggested Citation

  • Nicholas Fitzhenry & Malcolm Keswell, 2021. "Pareto efficient intrahousehold allocations and land rights: evidence from South Africa," SALDRU Working Papers 286, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:286
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    More about this item

    Keywords

    Household Economics; expenditure; land reform;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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