Should husband and wife really pool their incomes?
R. Swaby and
Applied Economics Letters, 2007, vol. 14, issue 11, 813-816
This article addresses the problem of optimal provision of household public goods in family decision-making. In particular, we attempt to answer the question of whether or not the family is better off as an entity when spouses pool their incomes. Our findings suggest that the equilibrium attained when incomes are pooled is Pareto superior to the Cournot-Nash equilibrium outcome.
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