Pareto efficient intrahousehold allocations and land rights: evidence from South Africa

Nicholas Fitzhenry and Malcolm Keswell
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Nicholas Fitzhenry: Department of Economic History, London School of Economics
Malcolm Keswell: Southern Africa Labour and Development Research Unit & School of Economics, University of Cape Town

No 286, SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town

Abstract: We study whether South African farm households participating in a land reform program make Pareto efficient intrahousehold consumption decisions. Using evaluation survey data of beneficiary households participating in South Africa’s Land Redistribution for Agricultural Development (LRAD) program, we estimate and test the unitary and collective models of intrahousehold resource allocation. By estimating the households’ demand function’s responses to the size of land grant transfers going to resident men and women, we find evidence contradicting the income pooling hypothesis of the unitary model. On the other hand, we cannot reject the hypothesis allocations are Pareto efficient. A test based on a linearisation of the demand system also favours Pareto efficiency.

Keywords: Household Economics; expenditure; land reform (search for similar items in EconPapers)
JEL-codes: D12 D13 O12 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ldr:wpaper:286

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