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The Collective Household Enterprise Model: An Empirical Analysis

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  • Menon, Martina
  • Perali, Carlo Federico

Abstract

This paper estimates a household model where both the production and consumption sides are observed. The household activities produce both marketable and nonmarketable products. Family members consume market goods, domestically produced goods and leisure. This household equilibrium model is described within a collective framework. The data are from a nation-wide sample of Italian farm-households. The estimation is implemented using a generalized Heckman estimator to account for corner solutions generated by the fact that not all households are engaged in all enterpreneurial activities and do not consume some of all goods and leisure. The identification of the sharing rule stems from the assignability of clothing consumption and leisure.

Suggested Citation

  • Menon, Martina & Perali, Carlo Federico, 2011. "The Collective Household Enterprise Model: An Empirical Analysis," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120379, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:120379
    DOI: 10.22004/ag.econ.120379
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    Cited by:

    1. Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.

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