Sharing Rule Identification for General Collective Consumption Models

Laurens Cherchye, Bram De Rock, Arthur Lewbel and Frederic Vermeulen

Econometrica, 2015, vol. 83, issue 5, 2001-2041

Abstract: We propose a method to set identify bounds on the sharing rule for a general collective household consumption model. Unlike the effects of distribution factors, the level of the sharing rule cannot be uniquely identified without strong assumptions on preferences across households. Our new results show that, though not point identified without these assumptions, strong bounds on the sharing rule can be obtained. We get these bounds by applying revealed preference restrictions implied by the collective model to the household's continuous aggregate demand functions. We obtain informative bounds even if nothing is known about whether each good is public, private, or assignable within the household, though having such information tightens the bounds. We apply our method to US PSID data, obtaining narrow bounds that yield useful conclusions regarding the effects of income and wages on intrahousehold resource sharing, and on the prevalence of individual (as opposed to household level) poverty.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (70)

Downloads: (external link)
http://hdl.handle.net/

Related works:
Working Paper: Sharing Rule Identification for General Collective Consumption Models (2013)
Working Paper: Sharing rule identification for general collective consumption models (2012)
Working Paper: Sharing Rule Identification for General Collective Consumption Models (2012)
Working Paper: Sharing Rule Identification for General Collective Consumption Models (2012)
Working Paper: Sharing Rule Identification for General Collective Consumption Models (2012)
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:wly:emetrp:v:83:y:2015:i:5:p:2001-2041

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido W. Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().