Estimating A Model of Inefficient Cooperation and Consumption in Collective Households

Arthur Lewbel and Krishna Pendakur

No 1048, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: Lewbel and Pendakur (2021) propose a model of consumption inefficiency in collective households, based on "cooperation factors". We simplify that model to make it empirically tractable, and apply it to identify and estimate household member resource shares, and to measure the dollar cost of inefficient levels of cooperation. Using data from Bangladesh, we find that increased cooperation among household members yields the equivalent of a 13% gain in total expenditures, with most of the benefit of this gain going towards men.

Keywords: Collective Household Model; Inefficiency; Bargaining Power; Sharing Rule; Demand Systems (search for similar items in EconPapers)
JEL-codes: C31 D11 D12 D13 I32 (search for similar items in EconPapers)
Date: 2021-01-15, Revised 2022-07-15
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Journal Article: Estimating a model of inefficient cooperation and consumption in collective households (2024)
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