A Sharing Model of the Household: Explaining the Deaton-Paxson Paradox and Computing Household Indifference Scales
This paper presents a new model of the household that is able to explain a variety of consumption patterns that existing models cannot describe, most notably, those associated with the Deaton and Paxson (1998) paradox. The most distinctive feature of this model is the presence of common-pool goods (rival and non-excludable) previously ignored in the literature. Under regularity conditions, the model can be interpreted as a hybrid between non-cooperative and a collective models of the household. Empirically, the paper revisits the Deaton-Paxson paradox exploiting household splits in longitudinal data and computes the elusive indifference scales coefficients.
Year of publication: |
2018
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Authors: | Gutierrez, Federico H. |
Publisher: |
Maastricht : Global Labor Organization (GLO) |
Subject: | sharing model | collective model | intra-household allocation | Deaton-Paxson paradox | household economies of scale | indifference scales |
Saved in:
freely available
Series: | GLO Discussion Paper ; 166 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 168483824X [GVK] hdl:10419/173217 [Handle] RePEc:zbw:glodps:166 [RePEc] |
Classification: | D13 - Household Production and Intrahouse Allocation ; J12 - Marriage; Marital Dissolution; Family Structure ; O15 - Human Resources; Income Distribution; Migration |
Source: |
Persistent link: https://www.econbiz.de/10011780702