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Testing Nash-bargaining household models with time-series data

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Author Info
Hoddinott, John
Adam, Christopher

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Abstract

This paper uses a “natural experiment” in Canadian divorce law reform to discriminate empirically between unitary and Nash-bargained models of the household. Using time-series data from three Canadian provinces, it demonstrates that following landmark divorce law reforms in the 1970s—reforms that led to improvements in women's expected settlement upon divorce in Ontario and British Columbia, suicide rates for older, married women in these provinces registered a sharp decline. Similar declines were not registered for younger, unmarried women or men in Ontario and British Columbia, nor for older, married women in Quebec, where the legal basis for divorce did not change. These results are consistent with Nash-bargained models of the household but not with the unitary model.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 52.

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Date of creation: 1998
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Handle: RePEc:fpr:fcnddp:52

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Keywords: Gender ; Households Models. ; Canada Social policy. ; Gender issues. ; Household resource allocation ;

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References listed on IDEAS
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  1. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier. [Downloadable!] (restricted)
  2. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December. [Downloadable!] (restricted)
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  3. John Strauss & Kathleen Beegle, 1996. "Intrahousehold Allocations: A Review of Theories, Empirical Evidence and Policy Issues," International Development Working Papers 62, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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  4. Ted Bergstrom, 1995. "A Survey of Theories of the Family," Papers _027, University of Michigan, Department of Economics. [Downloadable!]
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  5. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
  6. Alderman, H. & Chiappori, P.A. & Haddad, L., 1994. "Unitary versus Collective Models of the Household: Time to Shift the Burden of Proof?," DELTA Working Papers 94-17, DELTA (Ecole normale supérieure).
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  7. Favero, C. & Hendry, D., 1990. "Testing The Lucas Critique: A Review," Economics Series Working Papers 99101, University of Oxford, Department of Economics.
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  8. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December. [Downloadable!] (restricted)
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  9. Hamermesh, Daniel S & Soss, Neal M, 1974. "An Economic Theory of Suicide," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 83-98, Jan.-Feb.. [Downloadable!] (restricted)
  10. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February. [Downloadable!] (restricted)
  11. Bean, C R & Layard, P R G & Nickell, S J, 1986. "The Rise in Unemployment: A Multi-country Study," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S1-22, Supplemen. [Downloadable!] (restricted)
  12. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June. [Downloadable!] (restricted)
  13. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May. [Downloadable!] (restricted)
  14. Lundberg, Shelly & Pollak, Robert A, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-58, Fall. [Downloadable!] (restricted)
  15. Andrews, Donald W K, 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Econometrica, Econometric Society, vol. 61(4), pages 821-56, July. [Downloadable!] (restricted)
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  16. Rosenzweig, Mark R & Schultz, T Paul, 1984. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Reply," American Economic Review, American Economic Association, vol. 74(3), pages 521-22, June. [Downloadable!] (restricted)
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  1. Haddad, Lawrence James & Oshaug, Arne, 1999. "How does the human rights perspective help to shape the food and nutrition policy research agenda?," FCND discussion papers 56, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  2. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany. [Downloadable!]
  3. Fafchamps, Marcel & Quisumbing, Agnes R., 2001. "Control and ownership of assets within rural Ethiopian households," FCND discussion papers 120, International Food Policy Research Institute (IFPRI). [Downloadable!]
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