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A note on separability and intra-household resource allocation in a collective household model

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  • Tomoki Fujii
  • Ryuichiro Ishikawa

Abstract

This paper shows that it is possible to track the changes in the distribution of power within a couple by focusing on the changes in the pattern of private consumption when the consumption decisions are efficient and private consumption is separable from public consumption in individual preferences. We first show that the separability of private consumption from public consumption at the individual level carries over to the household level. Hence, changes in public consumption only matters through a change in the residual budget available for private consumption. When the consumption decisions within the household is efficient, private consumption decisions can be modeled as the solution of a problem consisting in maximizing a weighted sum of the private-consumption sub-utility functions of the spouses under the residual budget, the weights being unique and representing the distribution of power over the allocation of private consumption. The model presented in this paper can be used to analyze the changes in the household resource allocation due to, for example, childbirth. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Tomoki Fujii & Ryuichiro Ishikawa, 2013. "A note on separability and intra-household resource allocation in a collective household model," Review of Economics of the Household, Springer, vol. 11(1), pages 143-149, March.
    • Handle: RePEc:kap:reveho:v:11:y:2013:i:1:p:143-149
    DOI: 10.1007/s11150-012-9155-8
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    1. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1267-1303.
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    8. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment on experimental data," ULB Institutional Repository 2013/131707, ULB -- Universite Libre de Bruxelles.
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    12. 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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    14. Weiss, Yoram & Sharir, Shmuel, 1978. "A Composite Good Theorem for Simple Sum Aggregates," Econometrica, Econometric Society, vol. 46(6), pages 1499-1501, November.
    15. Tomoki Fujii & Ryuichiro Ishikawa, 2013. "How Does Childbirth Alter Intrahousehold Resource Allocation? Evidence from Japan," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 362-387, June.
    16. Christina Peters, 2011. "Effects of family planning and health services on women’s welfare: evidence on dowries and intra-household bargaining in Bangladesh," Review of Economics of the Household, Springer, vol. 9(3), pages 327-348, September.
    17. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data," Review of Economics of the Household, Springer, vol. 10(3), pages 395-421, September.
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    3. Swallow, Kimberly A. & Swallow, Brent M., 2015. "Explicitly integrating institutions into bioeconomic modeling:," IFPRI discussion papers 1420, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Collective model; Intra-household resource allocation; Bargaining; Separability; C78; D01; D11;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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