Universal Decentralisation: A Demand System for Collective and Unitary Models with Household Public Goods

Maria Chiuri and Peter Simmons

Economic Journal, 1997, vol. 107, issue 441, 372-89

Abstract: This paper defines demand systems that exhibit universal decentralization; the authors argue that this concept is important in household consumption and labor supply models. They show that the concept nests many approaches to the analysis of individual and family behavior. The authors find that conditions for demand with universal decentralization to be the result of an individual utility maximization process and also for such demands to be the result of a household welfare maximization procedure. They explore the link between universal decentralization and quasi separability. There are connections between universal decentralization and a nonlinear idea of the rank of a demand system. Copyright 1997 by Royal Economic Society.

Date: 1997
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