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Collective and Unitary Models: a Clarification

Author

Listed:
  • Martin Browning

    (Institute of Economics, University of Copenhagen)

  • Pierre-André Chiappori

    (Department of Economics, University of Chicago)

  • Valérie Lechene

    (Wadham College, Oxford University)

Abstract

In this note we identify and clarify a confusion that has arisen in the literature about the exact relationship between unitary and collective models and what enters the Pareto weight and the sharing function. We suggest that we should denote as `unitary` any model that leads to outcomes that satisfy the Slutsky conditions whether or not these outcomes depend on distribution factors. In particular, income pooling is neither necessary nor sufficient for a unitary model. We also show that the presence of prices or total expenditure in the sharing rule cannot be used as a test for a unitary model.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2004. "Collective and Unitary Models: a Clarification," CAM Working Papers 2004-15, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    • Handle: RePEc:kud:kuieca:2004_15
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    References listed on IDEAS

    as
    1. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-1096, December.
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    More about this item

    Keywords

    unitary; collective; intrahousehold allocation; distribution factors; demand;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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