Household agreement and financial satisfaction: a bargaining perspective

Blake Thomas Gray, Yi Liu and Sarah Del Asebedo

Applied Economics Letters, 2022, vol. 29, issue 4, 282-291

Abstract: This study investigates the relationship between married individuals’ financial satisfaction and their agreement about the investment of household savings and major life issues. Couples are categorized into two groups: (1) those who agree to share decision-making or assign a primary decision maker and (2) those who disagree. We then test for differences in individual financial satisfaction by female-headed, male-headed, equally shared and households in disagreement. Successful bargaining is expected to result in households that agree on a decision-making arrangement that maximizes financial satisfaction. The results suggest that spouses who agree on a decision-making arrangement when investing in household savings or making major life decisions are more likely to report higher levels of financial satisfaction than those who do not. These results align with the theory that states cooperative bargaining agreements result in higher utility than non-cooperating bargaining agreements.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2020.1864271 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:29:y:2022:i:4:p:282-291

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2020.1864271

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().