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Collective Household Welfare and Intra-household Inequality

Author

Listed:
  • Jean-paul Chavas

    () (Department of Economics (University of Verona))

  • Martina Menon

    () (Department of Economics (University of Verona))

  • Elisa Pagani

    () (Department of Economics (University of Verona))

  • Federico Perali

    () (Department of Economics (University of Verona))

Abstract

We investigate the relationship between the individual and household indirect utility functions in the context of a collective household model. Our analysis produces new results that explain how the rule governing the distribution of resources within household members is related to the measurement of household welfare and intra-household inequality. By examining the relationship between centralized and decentralized pro- gram, we show that, in general, income shares are equal to the product of two weights: the Pareto weight and a weight reflecting income effects across individuals. For a weighted Bergsonian representation of household utility and general assumptions about individual preferences, we derive the associated household welfare functions and intra-household inequality measures belonging to a family of entropy indexes.

Suggested Citation

  • Jean-paul Chavas & Martina Menon & Elisa Pagani & Federico Perali, 2015. "Collective Household Welfare and Intra-household Inequality," Working Papers 13/2015, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:13/2015
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    References listed on IDEAS

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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. Echeverría, Lucía & Menon, Martina & Perali, Federico & Berges, Miriam, 2019. "Intra-household inequality and child welfare in Argentina," Nülan. Deposited Documents 3051, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Piera Mazzoleni & Elisa Pagani & Federico Perali, 2019. "The curvature properties of social welfare functions," Working Papers 493, ECINEQ, Society for the Study of Economic Inequality.
    4. repec:kap:jfamec:v:40:y:2019:i:2:d:10.1007_s10834-018-9597-0 is not listed on IDEAS
    5. Louis Raymond Eeckhoudt & Elisa Pagani & Eugenio Peluso, 2017. "Multidimensional Risk Aversion: The Cardinal Sin," Working Papers 12/2017, University of Verona, Department of Economics.

    More about this item

    Keywords

    Collective household model; Pareto weight; Sharing rule.;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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