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Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses

Author

Listed:
  • Carlsson, Fredrik

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • He, Haoran

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Martinsson, Peter

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Qin, Ping

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Sutter, Matthias

    (Department of Public Finance, University of Innsbruck)

Abstract

Many economic decisions are made jointly within households. This raises the question about spouses’ relative influence on joint decisions and the determinants of relative influence. Using a controlled experiment (on inter-temporal choice), we let each spouse first make individual decisions and then make joint decisions with the other spouse. We use a random parameter probit model to measure the relative influence of spouses on joint decisions. In general, husbands have a stronger influence than wives. However, in richer households and when the wife is older than the husband, we find a significantly stronger influence of the wife on joint decisions.

Suggested Citation

  • Carlsson, Fredrik & He, Haoran & Martinsson, Peter & Qin, Ping & Sutter, Matthias, 2010. "Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses," Working Papers in Economics 465, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0465
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    More about this item

    Keywords

    household decision making; spouses; relative influence; random parameter model; field experiment; time preferences;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D10 - Microeconomics - - Household Behavior - - - General

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