Caring and Sharing: Tests Between Alternative Models of Intra-household Allocation

Martin Browning and Valérie Lechene ()

No 01-07, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: Several models of intra-household decision making have been suggested in the literature. We present a framework that includes all suggested models and variants as special cases. We derive the theoretical predictions of these models for the relationship between expenditures on goods and the intra-household distribution of income. We estimate and test between these relationships using Canadian household expenditure data. We conclude that there is evidence that both husbands and wives care for each other in the sense that with an unequal distribution of incomes the high income partner behaves as a `Becker dictator' and there is local income pooling. We further find that for about half of the households in our sample (those with more equal incomes) a re-distribution of income would lead to changes in budget allocations. We conclude that the data are consistent with a collective model with caring partners.

Keywords: Intra-household Allocation; Altruism; Cooperative Behaviour; Non Cooperative Behaviour (search for similar items in EconPapers)
JEL-codes: D12 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2001-04
New Economics Papers: this item is included in nep-mfd and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0107

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