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Estimating A Model of Inefficient Cooperation and Consumption in Collective Households

Author

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  • Arthur Lewbel

    (Boston College)

  • Krishna Pendakur

    (Simon Fraser University)

Abstract

Lewbel and Pendakur (2021) propose a model of consumption inefficiency in collective households, based on "cooperation factors". We simplify that model to make it empirically tractable, and apply it to identify and estimate household member resource shares, and to measure the dollar cost of inefficient levels of cooperation. Using data from Bangladesh, we find that increased cooperation among household members yields the equivalent of a 13% gain in total expenditures, with most of the benefit of this gain going towards men.

Suggested Citation

  • Arthur Lewbel & Krishna Pendakur, 2021. "Estimating A Model of Inefficient Cooperation and Consumption in Collective Households," Boston College Working Papers in Economics 1048, Boston College Department of Economics, revised 15 Jul 2022.
    • Handle: RePEc:boc:bocoec:1048
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    More about this item

    Keywords

    Collective Household Model; Inefficiency; Bargaining Power; Sharing Rule; Demand Systems;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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