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Intra-Household Efficiency: an Experimental Study from Ethiopia

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  • Kebede, Bereket
  • Munro, Alistair
  • Tarazona, Marcela
  • Verschoor, Arjan

Abstract

An experimental design using treatments of a voluntary contribution mechanism is used to test household efficiency. Efficiency is decisively rejected in all treatments contrary to the assumption of most household models. Information on initial endowments of spouses improves efficiency only in some treatments suggesting that the impact of information is context dependent. Actual and expected contribution rates of spouses are systematically different; husbands´ (wives´) expectations of their wives´ (husbands´) contributions are higher (lower) than actual contributions. These errors imply that equilibrium in a game theoretic framework is unlikely. Statistical tests indicate other considerations than efficiency are likely important.

Suggested Citation

  • Kebede, Bereket & Munro, Alistair & Tarazona, Marcela & Verschoor, Arjan, 2013. "Intra-Household Efficiency: an Experimental Study from Ethiopia," WIDER Working Paper Series 012, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2013-012
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    Cited by:

    1. Alistair Munro, 2014. "Hide and Seek: A Theory of Efficient Income Hiding within the Household," GRIPS Discussion Papers 14-17, National Graduate Institute for Policy Studies.
    2. Munro, Alistair & Kebede, Bereket & Tarazona-Gomez, Marcela & Verschoor, Arjan, 2014. "Autonomy and efficiency. An experiment on household decisions in two regions of India," Journal of the Japanese and International Economies, Elsevier, vol. 33(C), pages 114-133.
    3. Hoel, Jessica B. & Hidrobo, Melissa & Bernard, Tanguy & Ashour, Maha, 2017. "Productive inefficiency in dairy farming and cooperation between spouses: Evidence from Senegal:," IFPRI discussion papers 1698, International Food Policy Research Institute (IFPRI).
    4. Holden, Stein & Bezu, Sosina, 2013. "Joint Land Certification and Intra-household Decision-making:Towards Empowerment of Wives?," CLTS Working Papers 14/13, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    5. Mohammed Abdellaoui & Olivier l’Haridon & Corina Paraschiv, 2013. "Individual vs. couple behavior: an experimental investigation of risk preferences," Theory and Decision, Springer, vol. 75(2), pages 175-191, August.
    6. Sarah Reynolds, 2015. "Behavioral games and intrahousehold allocation: teenage mothers and their mothers in Brazil," Review of Economics of the Household, Springer, vol. 13(4), pages 901-927, December.
    7. François Cochard & Hélène Couprie & Astrid Hopfensitz, 2016. "Do spouses cooperate? An experimental investigation," Review of Economics of the Household, Springer, vol. 14(1), pages 1-26, March.
    8. Hoel, Jessica B., 2015. "Heterogeneous households: A within-subject test of asymmetric information between spouses in Kenya," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 123-135.
    9. Holden, Stein & Bezu, Sosina, 2014. "Joint Land Certification, Gendered Preferences, and Land-related Decisions: Are Wives Getting More Involved?," CLTS Working Papers 6/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    10. Charlotte Ringdal & Hoem Sjursen, 2017. "Household bargaining and spending on children: Experimental evidence from Tanzania," WIDER Working Paper Series 128, World Institute for Development Economic Research (UNU-WIDER).
    11. Afzal, Uzma & d Adda, Giovanna & Fafchamps, Marcel & Said, Farah, 2016. "Gender and Agency within the Household: Experimental Evidence from Pakistan," CEPR Discussion Papers 11464, C.E.P.R. Discussion Papers.
    12. Arjan Verschoor & Bereket Kebede & Alistair Munro & Marcela Tarazona, 2017. "Spousal Control and Efficiency of Intra-Household Decision Making: Experiments among Married Couples in India, Ethiopia and Nigeria," GRIPS Discussion Papers 16-31, National Graduate Institute for Policy Studies.
    13. Anderson, C. Leigh & Reynolds, Travis W. & Gugerty, Mary Kay, 2017. "Husband and Wife Perspectives on Farm Household Decision-making Authority and Evidence on Intra-household Accord in Rural Tanzania," World Development, Elsevier, vol. 90(C), pages 169-183.
    14. Michele Tertilt & Matthias Doepke, 2015. "Asymmetric Information in Couples," 2015 Meeting Papers 606, Society for Economic Dynamics.
    15. Farah Said, 2016. "Access to Finance and Agency: An Overview of the Constraints to Female-Run Enterprises," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 331-349, September.
    16. Bezu, Sosina & Holden, Stein T., 2015. "Generosity and sharing among villagers: Do women give more?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 103-111.
    17. Nathan Fiala, 2017. "Business is Tough, but Family is Worse: Household Bargaining and Investment in Microenterprises in Uganda," Working papers 2017-05, University of Connecticut, Department of Economics.
    18. Alistair Munro & Bereket Kebede & Marcela Tarazona-Gomez & Arjan Verschoor, 2011. "Autonomy or efficiency: An experiment on household decisions in two regions of India," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 11-02, School of Economics, University of East Anglia, Norwich, UK..
    19. Alistair Munro & Danail Popov, 2013. "A portmanteau experiment on the relevance of individual decision anomalies for households," Experimental Economics, Springer;Economic Science Association, vol. 16(3), pages 335-348, September.
    20. Ringdal, Charlotte & Sjursen, Ingrid Hoem, 2017. "Household bargaining and spending on children: Experimental evidence from Tanzania," Discussion Paper Series in Economics 19/2017, Norwegian School of Economics, Department of Economics.
    21. repec:eee:wdevel:v:102:y:2018:i:c:p:18-29 is not listed on IDEAS

    More about this item

    Keywords

    Econometric models (Economic development); Game theory; Women;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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