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Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining

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  • Bargain, Olivier
  • Donni, Olivier

Abstract

We suggest a new methodology to estimate the share of household income accruing to children. The household behavior is represented according to the collective approach. That is, each household member is characterized by specific preferences. Following the principle of the Rothbarth approach, the identification of the children's share requires the observation of adult-specific goods. Our method differs from this traditional approach in that it is compatible with economies of scale as well as with parents' bargaining. We illustrate the method with an application to the French Household Budget Survey.

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  • Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
    • Handle: RePEc:eee:eecrev:v:56:y:2012:i:4:p:792-813
    DOI: 10.1016/j.euroecorev.2012.02.003
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    More about this item

    Keywords

    Consumer demand; Collective model; Rothbarth method; Expenditure on children; Scale economies; Equivalence scales; Indifference scales;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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