Gender Power and Family Decision in a Growth Model

In this chapter, Gender Power and Family Decision in an Growth Model, contributes to the literature on macroeconomics based on neoclassical growth theory and family economics by integrating some important ideas in neoclassical growth theory and family economics. The household decisions are modeled by maximizing the family utility function which is the “weighted” average of the husband and wife’s utility functions. The weight measures the balance of the household. It is organized as follows. Section 15.1 constructs the growth model with the family decision. Section 15.2 studies the movement of the economy. Section 15.3 shows the impact that the husband has less power in the family decision-making on the behavior of the system. Section 15.4 plots how the system is affected when the wife’s human capital is enhanced. Section 15.5 shows how the economic situations of the family, and the nation are affected when the wife cares more about her husband. Section 15.6 studies the effects that the wife has on her propensity to save on the system. Section 15.7 shows the impact of a rise in the wife’s propensity to consume goods. Section 15.8 follows the path of the system when the wife increases her propensity to have family goods. Section 15.9 plots the movement when the wife increases her propensity to stay at home. Section 15.10 shows how the system is affected when the total factor productivity is enhanced.