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Intra-household Resource Allocation and Familial Ties

Listed author(s):
  • Harounan Kazianga

    ()

    (Oklahoma State University)

  • Zaki Wahhaj

    ()

    (University of Kent)

In this paper, we investigate the link between intra-household resource allocation and familial ties between household members. We show that, within the same geographic, economic and social environments, households where members have `stronger' familial ties (e.g. a nuclear family household) achieve near Pareto efficient allocation of productive resources and Pareto efficient allocation of consumption while households with `weaker' familial ties (e.g. an extended family household) do not. We propose a theoretical model of the household based on the idea that altruism between household members vary with familial ties which generates predictions consistent with the observed empirical patterns.

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File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/OKSWPS1605.pdf
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Paper provided by Oklahoma State University, Department of Economics and Legal Studies in Business in its series Economics Working Paper Series with number 1605.

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Length: 67 pages
Date of creation: 2016
Handle: RePEc:okl:wpaper:1605
Contact details of provider: Web page: http://spears.okstate.edu/ecls-working-papers/

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