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Testing unitary and bargaining models of Chinese household food consumption

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  • Jason Dietrich

Abstract

This study examines income and food consumption patterns within Chinese households to test the assumptions and predictions of two competing models of consumer demand, the Neo-Classical unitary model and a class of bargaining models. Four standard tests of the Neo-Classical model are conducted, as well as two tests of bargaining models recently developed by Chiappori and Browning (1998). Similar to many other studies, each of the assumptions and predictions of the Neo-Classical unitary model is rejected by the data. Alternatively, there is evidence that the bargaining models more accurately describe households' decision-making processes. The data suggest that multiple individuals within the household influence decisions, instead of households acting as one decision-making unit.

Suggested Citation

  • Jason Dietrich, 2008. "Testing unitary and bargaining models of Chinese household food consumption," Applied Financial Economics, Taylor & Francis Journals, vol. 18(5), pages 397-410.
    • Handle: RePEc:taf:apfiec:v:18:y:2008:i:5:p:397-410
    DOI: 10.1080/09603100500399134
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    Cited by:

    1. Bárcena-Martín, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2020. "The role of income pooling and decision-making responsibilities in material deprivation," Economic Modelling, Elsevier, vol. 87(C), pages 416-428.
    2. Elena Bárcena-Martín & Maite Blázquez & Ana I. Moro Egido, 2016. "Intrahousehold allocation of resources and household deprivation," ThE Papers 16/05, Department of Economic Theory and Economic History of the University of Granada..
    3. Elena Bárcena-Martín & Maite Blázquez & Ana I. Moro Egido, 2017. "Intra-household allocation of resources and decision-making. How important are in terms of individual well-being?," ThE Papers 17/03, Department of Economic Theory and Economic History of the University of Granada..
    4. 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).
    5. Bárcena, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2016. "The socioeconomic gradient in health: The role of intra-household resource allocation," Working Papers in Economic Theory 2016/06, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    6. Tipper, Adam, 2010. "Economic models of the family and the relationship between economic status and health," Social Science & Medicine, Elsevier, vol. 70(10), pages 1567-1573, May.

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