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Estimating the endogenously determined intrahousehold balance of power and its impact on expenditure pattern : evidence from Nepal

  • Koolwal, Gayatri
  • Ray, Ranjan

The collective approach to household behavior relaxes the restrictive features of the unitary model by specifying household welfare as a weighted combination of the individuals'utilities. But the weights are assumed fixed or exogenous to the analysis. The authors extend the collective approach by proposing and estimating a framework where the weights are determined and simultaneously estimated with the household outcomes. The authors present Nepalese evidence that suggests that a woman's share of household earnings understates her"power"in making household decisions. An increase in the woman's educational experience leads to a rise in her bargaining power. The results also reveal some interesting nonmonotonic relationships between a woman's"power"and the household's expenditure outcomes.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2814.

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Date of creation: 31 Mar 2002
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Handle: RePEc:wbk:wbrwps:2814
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  1. Kanbur, Ravi & Haddad, Lawrence, 1994. "Are Better Off Households More Unequal or Less Unequal?," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 445-58, July.
  2. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  3. Maitra, P. & Ray, R., 2000. "Intra Household Resource Allocation And Their Impact On Expenditure Patterns: Comparative Evidence From South Africa And Pakistan," Papers 2000-09, Tasmania - Department of Economics.
  4. Basu, Kaushik, 2002. "A note on multiple general equilibria with child labor," Economics Letters, Elsevier, vol. 74(3), pages 301-308, February.
  5. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
  6. Ray, Ranjan, 2000. "Child Labor, Child Schooling, and Their Interaction with Adult Labor: Empirical Evidence for Peru and Pakistan," World Bank Economic Review, World Bank Group, vol. 14(2), pages 347-67, May.
  7. Kaushik Basu, 2006. "Gender and Say: a Model of Household Behaviour with Endogenously Determined Balance of Power," Economic Journal, Royal Economic Society, vol. 116(511), pages 558-580, 04.
  8. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
  9. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  10. Pollak, Robert A, 1994. "For Better or Worse: The Roles of Power in Models of Distribution within Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 148-52, May.
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