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Caring and Sharing: Tests Between Alternative Models of Intra-household Allocation

Author

Listed:
  • Martin Browning

    (Institute of Economics, University of Copenhagen)

  • Valérie Lechene

    (Oxford University)

Abstract
Several models of intra-household decision making have been suggested in the literature. We present a framework that includes all suggested models and variants as special cases. We derive the theoretical predictions of these models for the relationship between expenditures on goods and the intra-household distribution of income. We estimate and test between these relationships using Canadian household expenditure data. We conclude that there is evidence that both husbands and wives care for each other in the sense that with an unequal distribution of incomes the high income partner behaves as a `Becker dictator' and there is local income pooling. We further find that for about half of the households in our sample (those with more equal incomes) a re-distribution of income would lead to changes in budget allocations. We conclude that the data are consistent with a collective model with caring partners.

Suggested Citation

  • Martin Browning & Valérie Lechene, 2001. "Caring and Sharing: Tests Between Alternative Models of Intra-household Allocation," Discussion Papers 01-07, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:0107
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    File URL: http://www.econ.ku.dk/english/research/publications/wp/2001/0107.pdf/
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    References listed on IDEAS

    as
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    Cited by:

    1. Bargain, Olivier & Moreau, Nicolas, 2006. "Effets d’une réforme fiscale sur l’offre de travail des ménages dans un cadre collectif simulé," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 207-246, mars-juin.
    2. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    3. Olivier Bargain & Nicolas Moreau, 2002. "Is the collective model of labor supply useful for tax policy analysis ? A simulation exercise," DELTA Working Papers 2002-21, DELTA (Ecole normale supérieure).
    4. Olivier Bargain, 2008. "Normative evaluation of tax policies: from households to individuals," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 339-371, April.
    5. Laurens Cherchye & Sam Cosaert & Thomas Demuynck & Bram De Rock, 2020. "Group Consumption with Caring Individuals," The Economic Journal, Royal Economic Society, vol. 130(627), pages 587-622.
    6. Donni, Olivier, 2006. "Les modèles non coopératifs d’offre de travail : théorie et évidence," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 181-206, mars-juin.
    7. Katarina Nordblom, 2004. "Cohabitation and Marriage in a Risky World," Review of Economics of the Household, Springer, vol. 2(3), pages 325-340, April.
    8. Jens Bonke & Hans Uldall-Poulsen, 2007. "Why do families actually pool their income? Evidence from Denmark," Review of Economics of the Household, Springer, vol. 5(2), pages 113-128, June.
    9. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, June.
    10. Chiappori, Pierre-André & Donni, Olivier, 2006. "Les modèles non unitaires de comportement du ménage : un survol de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 9-52, mars-juin.
    11. Olivier Donni, 2004. "La théorie des modèles non coopératifs d'offre de travail et ses applications empiriques," Cahiers de recherche 0409, CIRPEE.
    12. Nazia Mansoor, 2011. "Marriage payments and bargaining power of women in rural Bangladesh," Studies in Economics 1119, School of Economics, University of Kent.
    13. Frederic Vermeulen & Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & , 2006. "Collective Models of Labor Supply with Nonconvex Budget Sets and Nonparticipation: A Calibration Approach," Review of Economics of the Household, Springer, vol. 4(2), pages 113-127, June.
    14. Keita, Moussa, 2011. "Influence de la négociation intra-ménage sur les dépenses d’éducation dans les ménages au Mali [Influence of intra-household bargaining on education expenditures in households in Mali]," MPRA Paper 57592, University Library of Munich, Germany.
    15. 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).
    16. Laurens Cherchye & Thomas Demuynck & Bram De Rock, 2011. "Revealed Preference Analysis of Non‐Cooperative Household Consumption," Economic Journal, Royal Economic Society, vol. 121(555), pages 1073-1096, September.
    17. Bargain, Olivier & Moreau, Nicolas, 2005. "Cooperative Models in Action: Simulation of a Nash-Bargaining Model of Household Labor Supply with Taxation," IZA Discussion Papers 1480, Institute of Labor Economics (IZA).
    18. Koohi-Kamali, Feridoon, 2008. "Intrahousehold inequality and child gender bias in Ethiopia," Policy Research Working Paper Series 4755, The World Bank.
    19. Kati Schindler, 2010. "Credit for What? Informal Credit as a Coping Strategy of Market Women in Northern Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 234-253.
    20. Nevena, Kulic & Giulia, Dotti Sani, 2015. "Intra-household sharing of financial resources: A non-technical review of the research field and its historical development," MPRA Paper 68420, University Library of Munich, Germany.

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    More about this item

    Keywords

    Intra-household Allocation; Altruism; Cooperative Behaviour; Non Cooperative Behaviour;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    NEP fields

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