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Household Consumption When the Marriage Is Stable

Laurens Cherchye (), Thomas Demuynck (), Bram De Rock and Frederic Vermeulen

American Economic Review, 2017, vol. 107, issue 6, 1507-34

Abstract: We develop a novel framework to analyze the structural implications of the marriage market for household consumption. We define a revealed preference characterization of efficient household consumption when the marriage is stable. We characterize stable marriage with intrahousehold (consumption) transfers but without assuming transferable utility. Our revealed preference characterization generates testable conditions even with a single observation per household and heterogeneous individual preferences across households. The characterization also allows for identifying the intrahousehold decision structure (including the sharing rule) under the same minimalistic assumptions. An application to Dutch household data illustrates the usefulness of our theoretical results.

JEL-codes: D60 D63 H21 H23 I38 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/aer.20151413
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Working Paper: Household Consumption When the Marriage is Stable (2017)
Working Paper: Household Consumption When the Marriage is Stable (2014) Downloads
Working Paper: Household consumption when the marriage is stable (2014) Downloads
Working Paper: Household Consumption When the Marriage Is Stable (2014) Downloads
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