Consumption Technology and the Intrafamily Distribution of Resources

Reuben Gronau

Journal of Political Economy, 1988, vol. 96, issue 6, 1183-1205

Abstract: This paper shows that the definition and the measurement of adult equivalence scales depend crucially on the concept of welfare used. When welfare is the utility parents derive from their own consumption , one has to assume separability of parents' and children's consumption. This assumption implies that the only way of imputing the intrafamily allocation of resources is by observing the consumption patterns of adult goods. Regardless of the definition used, one cannot separate the factors reflecting home technology (i.e., "needs") from those determining the intrafamily distribution rule (i.e., "wants") out of consumption data. Copyright 1988 by University of Chicago Press.

Date: 1988
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