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Individual Decisions and Household Demand for Consumption And Leisure

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  • Maria Concetta Chiuri

    (University of Bari and CSEF, University of Salerno)

Abstract

The standard microeconomic assumption of a household utility function raises two theoretical problems: it contradicts methodological individualism and it ignores economic phenomena like income and consumption sharing, division of labour, externalities and altruism within a household. This paper reviews two approaches, aggregation theory and more recent non-unitary models, to compare the different properties that household consumption and leisure demands have to satisfy in the two basic contexts. The paper also discusses some recent empirical evidence which seems to encourage further investigation in the non-unitary framework.

Suggested Citation

  • Maria Concetta Chiuri, 1999. "Individual Decisions and Household Demand for Consumption And Leisure," CSEF Working Papers 26, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:26
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    Cited by:

    1. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    2. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, June.
    3. Kaletski, Elizabeth, 2016. "Work versus School? The Effect of Work on Educational Expenditures for Children in Mexico," IZA Discussion Papers 10054, Institute of Labor Economics (IZA).
    4. Catalina Amuedo‐Dorantes & Cynthia Bansak, 2006. "Money Transfers among Banked and Unbanked Mexican Immigrants," Southern Economic Journal, John Wiley & Sons, vol. 73(2), pages 374-401, October.
    5. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    consumption; labour supply; intra- household allocation;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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