Stable marriage, household consumption and unobserved match quality

Martin Browning, Laurens Cherchye, Thomas Demuynck, Bram De Rock and Frederic Vermeulen

No 21-13, CEBI working paper series from University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI)

Abstract: We present a methodology for the structural empirical analysis of household consumption and time use behaviour under marital stability. Our approach is of the revealed preference type and non-parametric, meaning that it does not require a prior functional specification of individual utilities. Without making use of the transferable utility assumption, but still allowing for monetary transfers, our method can identify individuals' unobserved match qualities and quantify them in money metric terms. We can include both preference factors, affecting individuals' preferences over private and public goods, and match quality factors, driving differences in unobserved match quality. We demonstrate the practical usefulness of our methodology through an application to the Belgian MEqIn data. Our results reveal intuitive patterns of unobserved match quality that allow us to rationalise both the observed matches and the within-household allocations of time and money.

Keywords: household consumption; marital stability; unobserved match quality; revealed preference analysis; intrahousehold allocation (search for similar items in EconPapers)
JEL-codes: C14 C78 D11 (search for similar items in EconPapers)
Pages: 45
Date: 2021-09-23
New Economics Papers: this item is included in nep-isf and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Stable marriage, household consumption and unobserved match quality (2021)
Working Paper: Stable Marriage, Household Consumption and Unobserved Match Quality (2021)
Working Paper: Stable marriage, household consumption and unobserved match quality (2021)
Working Paper: Stable marriage, household consumption and unobserved match quality (2021)
Working Paper: Stable Marriage, Household Consumption and Unobserved Match Quality (2021)
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