Opening the black box of intra-household decision-making: Theory and non-parametric empirical tests of general collective consumption models

L.J.H. Cherchye, B. de Rock, F.M.P. Vermeulen

Research output: Contribution to journalArticleScientificpeer-review

43 Citations (Scopus)
353 Downloads (Pure)

Abstract

We provide “revealed preference” tests of general collective consumption models that account for public consumption and externalities within the household. We further propose a novel approach to model special cases of this model, which imply alternative assumptions regarding the sharing rule. Our application uses the panel data from the Russia Longitudinal Monitoring Survey. We find that the general model, together with a large class of special cases, cannot be rejected. By contrast, we do reject the standard unitary model. Since our tests are entirely nonparametric, this provides strong evidence in favor of models focusing on intrahousehold decision making.
Original languageEnglish
Pages (from-to)1074-1104
JournalJournal of Political Economy
Volume117
Issue number6
Publication statusPublished - 2009

Fingerprint Dive into the research topics of 'Opening the black box of intra-household decision-making: Theory and non-parametric empirical tests of general collective consumption models'. Together they form a unique fingerprint.

Cite this