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A Simple Approach to Investigate Intrahousehold Allocation of Private and Public Goods

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  • Olivier Donni

    (THEMA and Université de Cergy-Pontoise)

Abstract

We adopt the collective approach to consumer behavior with egoistic agents and assume that household consumption is either private or public. We then show that (1) household demand functions have to satisfy testable constraints and (2) some elements of the decision process can be retrieved from observed behavior. These results are based on a conditional demand (m-demand) framework in which household demand functions are directly derived from the individual marginal rates of substitution. Finally, we present an empirical illustration of these theoretical results using the U.S. Consumer Expenditure Survey. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Olivier Donni, 2009. "A Simple Approach to Investigate Intrahousehold Allocation of Private and Public Goods," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 617-628, August.
    • Handle: RePEc:tpr:restat:v:91:y:2009:i:3:p:617-628
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    Citations

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    Cited by:

    1. Couprie, Hélène & Peluso, Eugenio & Trannoy, Alain, 2010. "Is power more evenly balanced in poor households?," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 493-507, August.
    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, 2012. "Targeting and child poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(4), pages 783-808, October.
    4. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    5. Wiktor Adamowicz & Mark Dickie & Shelby Gerking & Marcella Veronesi & David Zinner, 2014. "Household Decision Making and Valuation of Environmental Health Risks to Parents and Their Children," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(4), pages 481-519.
    6. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute of Labor Economics (IZA).
    7. Pierre-Andre Chiappori & Costas Meghir, 2014. "Intrahousehold Inequality," Cowles Foundation Discussion Papers 1948, Cowles Foundation for Research in Economics, Yale University.
    8. 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).
    9. 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.
    10. Couprie Helene, 2009. "Is intra-household power more balanced in poor households? A parametric alternative," THEMA Working Papers 2009-12, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    11. Hélène Couprie & Gaëlle Ferrant, 2015. "Welfare Comparisons, Economies of Scale and Equivalence Scale in Time Use," Annals of Economics and Statistics, GENES, issue 117-118, pages 185-210.
    12. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents’ Bargaining," LISER Working Paper Series 2010-30, Luxembourg Institute of Socio-Economic Research (LISER).
    13. P. Chiappori, 2011. "Collective labor supply with many consumption goods," Review of Economics of the Household, Springer, vol. 9(2), pages 207-220, June.

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