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Collective and unitary models: a clarification

Author

Listed:
  • Valerie Lechene
  • Martin Browning
  • University of Copenhagen
  • Pierre-Andre Chiappori
  • University of Chicago

Abstract

In this note we identify and clarify a confusion that has arisen in the literature about the exact relationship between unitary and collective models and what enters the Pareto weight and the sharing function. We suggest that we should denote as `unitary` any model that leads to outcomes that satisfy the Slutsky conditions whether or not these outcomes depend on distribution factors. In particular, income pooling is neither necessary nor sufficient for a unitary model. We also show that the presence of prices or total expenditure in the sharing rule cannot be used as a test for a unitary model.

Suggested Citation

  • Valerie Lechene & Martin Browning & University of Copenhagen & Pierre-Andre Chiappori & University of Chicago, 2004. "Collective and unitary models: a clarification," Economics Series Working Papers 191, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:191
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    References listed on IDEAS

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    More about this item

    Keywords

    Unitary; Collective; Intrahousehold Allocation; Distribution Factors; Demand.;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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