Intra-Household Resource Allocation in Rural Tanzania: Why Women Care about Disclosure

I present a model of consumption and savings for a multiperson household in which members are imperfectly altruistic, derive utility from both private and shared public goods, and share wealth. I show that, despite having standard exponential time preferences, the household is time‐inconsistent: Members save too little and overspend on private consumption goods. The household remains time‐inconsistent even when members save separately, because the possibility of voluntary transfers or joint contribution to the public good preserves the dynamic commons problem. The household will choose to share wealth when the risk‐sharing benefits outweigh the utility cost of overconsumption.

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Intra-Household Resource Allocation in Rural Tanzania: Why Women Care about Disclosure

Cited by 3 publications

References 52 publications

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Time‐Consistent Individuals, Time‐Inconsistent Households

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