We consider an n-person economy in which efficiency is independent of distribution but the cardinal properties of the agents’ utility functions may preclude transferable utility (a property we call “Almost TU”). Holding the disagreement point fixed, we show that Almost TU is a necessary...

While many theoretical works, particularly in family economics, rely on the transferable utility (TU) assumption, its exact implications in terms of individual preferences have never been fully worked out. In this paper, we provide a set of necessary and sufficient conditions for a group to...

It is possible to have income effects on more than one good in utility profiles that lead to Transferable Utility (TU) and in the presence of many private and many public goods. Assuming that the utility functions are of the Generalized Quasi-linear (GQL) form is not necessary for TU to hold. I...

Income splitting for tax purposes results in more specialization of wives, but does this in turn generate more gender inequality? In my dynamic bargaining model with a divorce threatpoint, I find that who controls the couple's labour supply plays a crucial role in establishing this link. If...