Revealed preference analysis of noncooperative household consumption

L.J.H. Cherchye, T. Demuynck, B. de Rock

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We develop a revealed preference approach to analyse non-unitary household consumption behaviour that is not cooperative (or Pareto efficient). We derive global necessary and sufficient conditions for data consistency with the model. We show that the conditions can be verified by means of relatively straightforward mixed integer programming methods, which is particularly attractive in view of empirical analysis. Our framework extends to tests for separate spheres and joint contribution to public goods. An application to data drawn from the Russia Longitudinal Monitoring Survey demonstrates the empirical relevance of the non-cooperative consumption model.
Original languageEnglish
Pages (from-to)1073-1096
JournalEconomic Journal
Volume121
Issue number555
DOIs
Publication statusPublished - 2011

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Preference analysis
Revealed preference
Household consumption
Russia
Pareto
Mixed integer programming
Consumption behavior
Monitoring
Empirical analysis

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Cherchye, L.J.H. ; Demuynck, T. ; de Rock, B. / Revealed preference analysis of noncooperative household consumption. In: Economic Journal. 2011 ; Vol. 121, No. 555. pp. 1073-1096.
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Revealed preference analysis of noncooperative household consumption. / Cherchye, L.J.H.; Demuynck, T.; de Rock, B.

In: Economic Journal, Vol. 121, No. 555, 2011, p. 1073-1096.

Research output: Contribution to journalArticleScientificpeer-review

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