Title: Degrees of cooperation in household consumption models: a revealed preference analysis
Authors: Cherchye, Laurens
Demuynck, Thomas
De Rock, Bram
Issue Date: 2009
Publisher: KULeuven CES
Series Title: CES - Discussion paper series 09.20 pages:1-37
Abstract: We develop a revealed preference approach to analyze non-unitary consumption models with intrahousehold allocations deviating from the cooperative (or Pareto eff cient) solution. At a theoretical level, we establish revealed preference conditions of household consumption models with varying degrees of cooperation. Using these conditions, we show independence (or non-nestedness) of the different (cooperative-noncooperative) models. At a practical level, we show that our characterization implies testable conditions for a whole spectrum of cooperative-noncooperative models that can be verified by means of mixed integer programming (MIP) methods. This MIP formulation is particularly attractive in view of empirical analysis. An application to data drawn from the Russia Longitudinal Monitoring Survey (RLMS) demonstrates the empirical relevance of consumption models that account for limited intrahousehold cooperation.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center of Public Economics, Leuven
Department of Economics, Leuven - miscellaneous
Faculty of Business and Economics, Campus Kulak Kortrijk – miscellaneous
Mathematics, Campus Kulak Kortrijk

Files in This Item:
File Description Status SizeFormat
DPS0920.pdf Published 249KbAdobe PDFView/Open


All items in Lirias are protected by copyright, with all rights reserved.