Efficient Intra-household Allocations and Distribution Factors: Implications and Identification

TY - UNPB

T1 - Efficient Intra-household Allocations and Distribution Factors

T2 - Implications and Identification

AU - Browning, Martin

AU - Bourguignon, François

AU - Chiappori, Pierre-André

N1 - JEL-classification: D13

PY - 2006

Y1 - 2006

N2 - This paper provides an exhaustive characterization of testability and identifiability issues in the collective framework in the absence of price variation; it thus provides a theoretical underpinning for a number of empirical works that have been developed recently. We first provide a simple and general test of the Pareto efficiency hypothesis, which is consistent with all possible assumptions on the private or public nature of goods, all possible consumption externalities between household members, and all types of interdependent individual preferences and domestic production technology; moreover, the test is proved to be necessary and sufficient. We then provide a complete analysis of the identification problem; we show under which assumptions it is possible to identify, from the observation of the household consumption of private goods, the allocation of these goods within the household as well as the Engel curves of individual household members

AB - This paper provides an exhaustive characterization of testability and identifiability issues in the collective framework in the absence of price variation; it thus provides a theoretical underpinning for a number of empirical works that have been developed recently. We first provide a simple and general test of the Pareto efficiency hypothesis, which is consistent with all possible assumptions on the private or public nature of goods, all possible consumption externalities between household members, and all types of interdependent individual preferences and domestic production technology; moreover, the test is proved to be necessary and sufficient. We then provide a complete analysis of the identification problem; we show under which assumptions it is possible to identify, from the observation of the household consumption of private goods, the allocation of these goods within the household as well as the Engel curves of individual household members

KW - Faculty of Social Sciences

KW - intrahousehold allocation

KW - collective models

KW - identification

KW - sharing

M3 - Working paper

BT - Efficient Intra-household Allocations and Distribution Factors

PB - Department of Economics, University of Copenhagen

CY - Cph.

ER -