Collective Household Models: Principles and Main Results

Vermeulen, Frédéric

doi:10.1111/1467-6419.00177

Cited by 251 publications

(172 citation statements)

References 75 publications

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“…The aim of the present survey is to summarize research carried out on non-unitary models in recent years, and to update the surveys provided by Bourguignon and Chiappori (1992), , Chiuri (2000) and Vermeulen (2002). 4 In the following, we will mainly concentrate on cooperative models, insisting on their empirical content, as it is with respect to these models that the most signi…cant theoretical advances have taken place.…”

Section: The Current State Of Playmentioning

confidence: 99%

Nonunitary Models of Household Behavior: A Survey of the Literature

Donni

Chiappori

2011

Household Economic Behaviors

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents inIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This article considers non-unitary models of household behavior. These models suppose explicitly that households consist of a number of different members with preferences that are different from each other. They can be split up into two principal categories: cooperative (or collective) models, in which the allocations are supposed to be Pareto efficient; and noncooperative (or strategic) models which are based on the concept of Cournot-Nash equilibrium. The demand functions that describe household behavior in these models are subject to constraints that differ from the traditional Slutsky conditions. In addition, in a certain number of specific cases, the preferences of the different household members can be identified from observable behavior. NON-TECHNICAL SUMMARYThis article presents the various approaches recently developed in economics to model the behavior of multi-person households. In these approaches, each member in the household is represented by specific, different preferences. The outcome of the decision process is then the result of a bargaining between household members. Importantly, the theoretical implications of these models differ from what is generally obtained in more traditional models of household behavior. In addition, in a certain number of specific cases, the preferences of the different household members can be identified from observable behavior. We are conscious that this survey does not justice to the literature that has appeared in the intervening three years.Men are not, when...

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Section: The Current State Of Playmentioning

confidence: 99%

Nonunitary Models of Household Behavior: A Survey of the Literature

Donni

Chiappori

2011

Household Economic Behaviors

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“…Consider the unitary-model for households (see, for example, Vermeulen, 2002), that individuals in multi-member households maximize a common objective function, a standard assumption in macroeconomics literature. Moreover, for simplicity, assume that (t) = for all t, another standard assumption in the literature, and also that households of the same size all have the same utility function.…”

Section: Time-variant Momentary Utility Functionsmentioning

confidence: 99%

Confronting the Representative Consumer with Household-Size Heterogeneity

Koulovatianos¹,

Schröder²,

Schmidt³

2010

SSRN Journal

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Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer construct with microfoundations. One complex aspect of microlevel heterogeneity is household size, as individuals living in multi-member households have the potential to share goods within the household, bene…ting from household-size economies.Theoretically, we show that validating the role of a representative consumer would require that the way individuals bene…t from intra-household sharing is strictly aligned across the rich and the poor: once expenditures for subsistence needs are subtracted from disposable household income, household-size economies the remainder (discretionary) household incomes entail must be the same across the rich and the poor. We have designed a survey method that allows the testing of this stringent property of intra-household sharing and …nd that it holds.

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“…By now, it is well established that the collective model of [7] is both conceptually and empirically attractive for analyzing consumption behavior (see, for example, [17] for an overview of the relevant literature). This collective model assumes that the different household members are endowed with individual preferences defined over privately and publicly consumed goods (inside the household).…”

Section: Introductionmentioning

confidence: 99%