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Household Consumption When the Marriage is Stable

Author

Listed:
  • Laurens Cherchye
  • Thomas Demuynck
  • Bram De Rock
  • Frederic Vermeulen

Abstract

We develop a novel framework to analyze the structural implications of the marriage market for household consumption. We define a revealed preference characterization of efficient household consumption when the marriage is stable. We characterize stable marriage with intrahousehold (consumption) transfers but without assuming transferable utility. Our revealed preference characterization generates testable conditions even with a single observation per household and heterogeneous individual preferences across households. The characterization also allows for identifying the intrahousehold decision structure (including the sharing rule) under the same minimalistic assumptions. An application to Dutch household data illustrates the usefulness of our theoretical results.

Suggested Citation

  • Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2017. "Household Consumption When the Marriage is Stable," ULB Institutional Repository 2013/251990, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:ulb:ulbeco:2013/251990
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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. Chowdhury, Shyamal & Mallick, Debdulal & Chowdhury, Prabal Roy, 2017. "Natural Shocks and Marriage Markets: Evolution of Mehr and Dowry in Muslim Marriages," IZA Discussion Papers 10675, Institute of Labor Economics (IZA).
    3. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Mikhail Freer, 2018. "Equilibrium Play in First Price Auctions: Revealed Preference Analysis," Working Papers ECARES 2018-36, ULB -- Universite Libre de Bruxelles.
    4. Laurens Cherchye & Bram De Rock & Selma Telalagic Walther & Frederic Vermeulen, 2016. "Where Did It Go Wrong? Marriage and Divorce In Malawi," Economics Series Working Papers 786, University of Oxford, Department of Economics.
    5. repec:eee:ejores:v:272:y:2019:i:3:p:803-815 is not listed on IDEAS
    6. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2017. "Household Consumption When the Marriage Is Stable," American Economic Review, American Economic Association, vol. 107(6), pages 1507-1534, June.
    7. Laurens Cherchye & Sam Cosaert & Thomas Demuynck & Bram De Rock, 2017. "Group consumption with caring individuals," Working Papers Department of Economics 598911, KU Leuven, Faculty of Economics and Business, Department of Economics.
    8. repec:spr:jopoec:v:32:y:2019:i:1:d:10.1007_s00148-018-0696-x is not listed on IDEAS
    9. Olivier Bargain & Laurine Martinoty, 2019. "Crisis at home: mancession-induced change in intrahousehold distribution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 277-308, January.
    10. Victor H. Aguiar & Nail Kashaev, 2018. "Stochastic Revealed Preferences with Measurement Error," Papers 1810.05287, arXiv.org.
    11. Laurens Cherchye & Bram De Rock & Khushboo Surana & Frederic Vermeulen, 2016. " Marital matching, economies of scale and intrahousehold allocations," Working Papers Department of Economics 551159, KU Leuven, Faculty of Economics and Business, Department of Economics.
    12. repec:eee:eecrev:v:111:y:2019:i:c:p:305-335 is not listed on IDEAS

    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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