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Collective consumption: an application to the passive drinking effect

Martina Menon (), Federico Perali () and Luca Piccoli
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Martina Menon: University of Verona
Federico Perali: University of Verona

Review of Economics of the Household, 2018, vol. 16, issue 1, 143-169

Abstract: Abstract This study introduces a new collective complete demand system with individual Engel effects that is easy to estimate and permits undertaking policy analysis at the individual rather than household level. Previous estimations of collective demand were limited to single equations. The empirical application investigates the passive drinking effect, that is, whether consumption of alcohol affects the distribution of resources among household members and their level of wellbeing. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and suggest thought-provoking policy implications.

Keywords: Collective model; Demand system; Sharing rule; Alcohol consumption; Intra-household resource distribution (search for similar items in EconPapers)
JEL-codes: C31 C34 C51 D12 D13 (search for similar items in EconPapers)
Date: 2018
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