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The Engel Curves of Non-Cooperative Households

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  • Pierre-Andre Chiappori
  • Jesse Naidoo

Abstract

We provide a set of necessary and sufficient conditions for a system of Engel curves to have been generated by a non-cooperative model of family behaviour. These conditions fully characterise the local behaviour of household-level consumption in the cross-section, i.e., as a function of total income and distribution factors. In this setting, any demand system compatible with a non-cooperative model is also compatible with a collective model, but the converse is not true. We describe how these nested conditions may be tested using standard instrumental-variables strategies.

Suggested Citation

  • Pierre-Andre Chiappori & Jesse Naidoo, 2020. "The Engel Curves of Non-Cooperative Households," The Economic Journal, Royal Economic Society, vol. 130(627), pages 653-674.
    • Handle: RePEc:oup:econjl:v:130:y:2020:i:627:p:653-674.
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    File URL: http://hdl.handle.net/10.1093/ej/uez069
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    Cited by:

    1. José Alberto Molina & Jorge Velilla & Helena Ibarra, 2023. "Intrahousehold Bargaining Power in Spain: An Empirical Test of the Collective Model," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 84-97, March.
    2. Laurens Cherchye & Pierre-André Chiappori & Bram De Rock & Charlotte Ringdal & Frederic Vermeulen, 2021. "Feed the children," IFS Working Papers W21/32, Institute for Fiscal Studies.
    3. Calvi, Rossella & Penglase, Jacob & Tommasi, Denni & Wolf, Alexander, 2023. "The more the poorer? Resource sharing and scale economies in large families," Journal of Development Economics, Elsevier, vol. 160(C).

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