Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power

Martin Browning, Pierre Chiappori and Arthur Lewbel

No 2003-12, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics

Abstract: How much income would a woman living alone require to attain the same standard of living that she would have if she were married? What percentage of a married couple’s expenditures are controlled by the husband? How much money does a couple save on consumption goods by living together versus living apart? We propose and estimate a collective model of household behavior that permits identification and estimation of concepts such as these. We model households in terms of the utility functions of its members, a bargaining or social welfare function, and a consumption technology function. We demonstrate generic nonparametric identification of the model, and hence of equivalence scales, consumption economies of scale, household members’ bargaining power and other related concepts.

Keywords: consumer demand; collective model; adult equivalence scales; household bargaining; economies of scale; demand systems; bargaining power; Barten scales (search for similar items in EconPapers)
JEL-codes: C30 D11 D12 D63 I31 J12 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2003-12
New Economics Papers: this item is included in nep-bec and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power (2013)
Working Paper: Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power (2010)
Working Paper: Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power (2006)
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