Kinky choices, dictators and split might. A non-cooperative model for household consumption and labor supply

Jan Boone, Karen van der Wiel, Arthur van Soest () and Frederic Vermeulen

Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: We model consumption and labor supply behavior of a couple in a non-cooperative setting. Using minimal assumptions, we prove that demand for public goods is characterized by three regimes. It is either determined by the preferences of one of the partners only (Husband Dictatorship or Wife Dictatorship), or by both spouses’ preferences, in which case each partner’s influence depends on the relative wage rates (Split Might). The model is illustrated empirically using a sample drawn from the Consumer Expenditure Survey (CEX) where expenditures on children’s goods are a public good in both spouses’ preferences. It turns out that the spending pattern reflects the husband’s preferences in about 54% of the couples in our sample. Still, in an important minority of the households (about 45%), the wife acts as a dictator. Somewhat less than 1% of the couples is characterized by a split might regime.

Date: 2014-07
New Economics Papers: this item is included in nep-ger and nep-pol
References: Add references at CitEc
Citations:

Downloads: (external link)
https://lirias.kuleuven.be/bitstream/123456789/457847/1/DPS1421.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://lirias.kuleuven.be/bitstream/123456789/457847/1/DPS1421.pdf [301 Moved Permanently]--> https://lirias.kuleuven.be/bitstream/handle/123456789/457847/DPS1421.pdf?sequence=1 [302 Found]--> https://lirias.kuleuven.be/login)

Related works:
Working Paper: Kinky Choices, Dictators and Split Might: A Non-Cooperative Model for Household Consumption and Labor Supply (2009)
Working Paper: Kinky Choices, Dictators and Split Might: A Non-Cooperative Model for Household Consumption and Labor Supply (2009)
Working Paper: Kinky Choices, Dictators and Split Might: A Non-Cooperative Model for Household Consumption and Labor Supply (2009)
Working Paper: Kinky Choices, Dictators and Split Might: A Non-Cooperative Model for Household Consumption and Labor Supply (2009)
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:ete:ceswps:ces14.21

Access Statistics for this paper

More papers in Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven
Bibliographic data for series maintained by library EBIB ().