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How Falsifiable is the Collective Model? a New Test with an Application to Monogamous and Bigamous Households in Burkina Faso

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Listed:
  • Anyck Dauphin
  • Bernard Fortin
  • Guy Lacroix

Abstract

Collective rationality is seldom if ever rejected in the literature, raising doubt about its falsifiability. We show that the standard approach to test the collective model with distribution factors may yield misleading inference. We generalize the model and provide an appropriate test procedure to assess its validity. Our new approach extends to households that include more than two decision-makers (e.g., polygamous households, adult children). We investigate household consumption decision-making within monogamous and bigamous households in Burkina Faso. Using the standard testing approach, collective rationality within monogamous households is not rejected. Using our proposed test procedure, collective rationality is however rejected for monogamous households. Furthermore, our test also rejects collective rationality for bigamous households. We conclude that the household efficiency does yield empirically falsifiable restrictions despite being scarcely rejected in the literature.

Suggested Citation

  • Anyck Dauphin & Bernard Fortin & Guy Lacroix, 2015. "How Falsifiable is the Collective Model? a New Test with an Application to Monogamous and Bigamous Households in Burkina Faso," Cahiers de recherche 1505, CIRPEE.
    • Handle: RePEc:lvl:lacicr:1505
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    References listed on IDEAS

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    Cited by:

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    2. Denni Tommasi, 2016. "Household Responses to cash Transfers," Working Papers ECARES ECARES 2016-20, ULB -- Universite Libre de Bruxelles.
    3. Jennifer Golan & Alessia Isopi, 2022. "Bargaining Power and Inheritance Norms: Evidence from Polygamous Households in Nigeria," Economics Discussion Paper Series 2209, Economics, The University of Manchester.

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    More about this item

    Keywords

    Collective model; Distribution factors; Rationality; Efficiency; Polygamy;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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