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Collective consumption and welfare

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  • Olivier Donni

Abstract

In this paper, we present a collective model of household demand based on Pareto-efficiency. In addition, we suppose that (a) each household member is egoistic and consumption is purely private, (b) there is a set of distribution factors and (c) there is one exclusive good. Then we derive the testable restrictions that are implied by this theoretical setting and show how welfare comparisons at the individual level can be performed.

Suggested Citation

  • Olivier Donni, 2006. "Collective consumption and welfare," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 124-144, February.
    • Handle: RePEc:cje:issued:v:39:y:2006:i:1:p:124-144
    DOI: 10.1111/j.0008-4085.2006.00341.x
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    1. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," The World Bank Research Observer, World Bank, vol. 10(1), pages 1-19, February.
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    5. Dauphin, Anyck & Fortin, Bernard, 2001. "A test of collective rationality for multi-person households," Economics Letters, Elsevier, vol. 71(2), pages 211-216, May.
    6. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
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    8. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
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    Cited by:

    1. Donni, Olivier, 2006. "The Intrahousehold Allocation of Private and Public Consumption: Theory and Evidence from U.S. Data," IZA Discussion Papers 2137, Institute of Labor Economics (IZA).
    2. 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).
    3. Olivier Bargain & Olivier Donni, 2014. "Optimal Commodity Taxation and Redistribution within Households," Economica, London School of Economics and Political Science, vol. 81(321), pages 48-62, January.
    4. Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, June.
    5. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute of Labor Economics (IZA).

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    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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