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A note on separability and intra-household resource allocation in a collective household model

  • Tomoki Fujii

    ()

    (School of Economics, Singapore Management Unversity)

  • Ryuichiro Ishikawa

    ()

    (University of Tsukuba)

We consider a collective model of a household in which earn member has a utility function satisfying the weak separability condition. We show that the separability at the individual level carries over to the household level and that the allocation of private goods in any Pareto-efficient allocation can be supported as a Pareto-efficient allocation of the private sub-problem. We also provide the necessary and sufficient condition for the Pareto weight for the private sub-problem to move in the same direction as the household Pareto weight.

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Paper provided by Singapore Management University, School of Economics in its series Working Papers with number 06-2012.

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Length: 8 pages
Date of creation: Mar 2012
Date of revision:
Publication status: Published in SMU Economics and Statistics Working Paper Series
Handle: RePEc:siu:wpaper:06-2012
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  1. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
  2. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  3. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
  4. Blundell & Robin, 2000. "Latent separability : grouping goods without weak separability," Working Papers 156158, Institut National de la Recherche Agronomique, France.
  5. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2004. "Collective and Unitary Models: a Clarification," CAM Working Papers 2004-15, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  6. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  7. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
  8. Weiss, Yoram & Sharir, Shmuel, 1978. "A Composite Good Theorem for Simple Sum Aggregates," Econometrica, Econometric Society, vol. 46(6), pages 1499-1501, November.
  9. Richard Blundell & Pierre-Andr� Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
  10. Tomoki Fujii & Ryuichiro Ishikawa, 2013. "How Does Childbirth Alter Intrahousehold Resource Allocation? Evidence from Japan," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 362-387, 06.
  11. P. Chiappori, 2011. "Collective labor supply with many consumption goods," Review of Economics of the Household, Springer, vol. 9(2), pages 207-220, June.
  12. Christina Peters, 2011. "Effects of family planning and health services on women’s welfare: evidence on dowries and intra-household bargaining in Bangladesh," Review of Economics of the Household, Springer, vol. 9(3), pages 327-348, September.
  13. Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, 06.
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