Spouses with benefits: on match quality and consumption inside households

Martin Browning, Laurens Cherchye, Thomas Demuynck, Bram De Rock and Frederic Vermeulen

No 746808, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: We model the interaction between the marriage market and the intra household allocation of resources. We do this within a setting that accounts for both economic gains to marriage (through public consumption) and un observed non-material match quality, without relying on the transferable utility assumption. We adopt an axiomatic approach that leads to the em pirically tractable “Additive Quantity Shifting” (AQS) model. We develop a revealed preference methodology that is able to identify individuals’ het erogeneous match qualities and to quantify them in money metric terms. The methodology can include both preference factors, affecting individuals’ preferences over private and public goods, and match quality factors, driv ing differences in unobserved match quality. We demonstrate the practical usefulness of our methodology through an application to the Belgian MEqIn data. Our results reveal intuitive patterns of match quality that allow us to rationalise both the observed matches and the within-household allocations of time and money.

Pages: 44
Date: 2024
New Economics Papers: this item is included in nep-upt
Note: paper number DPS24.09
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Forthcoming in FEB Research Report Department of Economics

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Related works:
Working Paper: Spouses with Benefits: on Match Quality and Consumption inside Households (2024)
Working Paper: Spouses with benefits: on match quality and consumption inside households (2024)
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