Journal Article

Efficient Intra-Household Allocations and Distribution Factors: Implications and Identification

François Bourguignon, Martin Browning and Pierre-André Chiappori

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 76, issue 2, pages 503-528
Published in print April 2009 | ISSN: 0034-6527
Published online April 2009 | e-ISSN: 1467-937X | DOI: https://dx.doi.org/10.1111/j.1467-937X.2008.00525.x
Efficient Intra-Household Allocations and Distribution Factors: Implications and Identification

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This paper provides an exhaustive characterization of testability and identifiability issues in the collective framework in the absence of price variation; it thus provides a theoretical underpinning for a number of empirical works that have been developed recently. We first provide a simple and general test of the Pareto-efficiency hypothesis, which is consistent with all possible assumptions on the private or public nature of goods, all possible consumption externalities between household members, and all types of interdependent individual preferences and domestic production technology. The test is proved to be necessary and sufficient. We then provide conditions for the identification of the sharing rule and the Engel curves of individual household members for a variety of different observational schemes.

Keywords: D11; D13

Journal Article.  12149 words.  Illustrated.

Subjects: Household Behaviour and Family Economics

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