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How Bargaining in Marriage Drives Marriage Market Equilibrium

Journal of Labor Economics 2019 37(1), 297-321
This paper investigates marriage market equilibrium when bargaining in marriage (BIM) determines allocation within marriage. In contrast, the standard marriage market model assumes that prospective spouses make binding agreements in the marriage market (BAMM) that determine allocation within marriage. When BIM determines allocation within marriage, the appropriate framework for analyzing marriage market equilibrium is the Gale-Shapley matching model, not the Koopmans-Beckmann-Shapley-Shubik assignment model. BIM and BAMM have different implications not only for allocation within marriage but also for who marries, who marries whom, the number of marriages, and the Pareto efficiency of marriage market equilibrium.

Additive Utility Functions and Linear Engel Curves

Review of Economic Studies 1971 38(4), 401
Journal Article Additive Utility Functions and Linear Engel Curves Get access Robert A. Pollak Robert A. Pollak University of Pennsylvania Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 38, Issue 4, October 1971, Pages 401–414, https://doi.org/10.2307/2296686 Published: 01 October 1971

Conditional Demand Functions and Consumption Theory

Quarterly Journal of Economics 1969 83(1), 60
Introduction, 60. — I. Conditional demand functions, 61. — II. Conditional demand functions and ordinary demand functions, 64. — III. A new decomposition of the cross price derivatives, 65. — IV. Consumer behavior under straight rationing, 70. — V. Hicksian aggregation, 74. — VI. The Le Chatelier Principle and beyond, 75.

Generalized Separability

Econometrica 1972 40(3), 431
[A system of demand functions is said to exhibit "generalized additive separability" (GAS) if it can be written in the form xi = fi(yi, R(Y)), i = 1,..., n, where yi is the normalized price of the ith good, and R is a function of all normalized prices. That is, GAS implies that "other prices" enter the demand functions only through an index function, R. This paper shows that the demand functions corresponding to directly and indirectly additive utility functions, the Fourgeaud-Nataf demand functions, and Houthakker's self-dual addilog system exhibit GAS. The direct utility functions corresponding to indirect additivity and the self-dual addilog are characterized, and a production function interpretation of some of these results is suggested. "Generalized strong separability" (GSS) and "generalized weak separability" (GWS) are defined, and it is shown that GSS includes both direct and indirect weak separability.]

Welfare Evaluation and the Cost-of-Living Index in the Household Production Model

American Economic Review 2016
The household production model provides a framework for the theory of the household, and most applications have focused on its implications for market and nonmarket behavior. In this paper I examine the consequences of the new home economics for welfare analysis, and in particular for the cost-of-living index. In the household production framework market are combined with time to produce These commodities, rather than the market goods, are the arguments of the household's preference ordering; the demand for and time is a derived demand, since are not desired for their own sake, but only as inputs into the production of commodities.' This paper is an analysis of the implications of the household production model for welfare evaluation, not a critique of the model. Hence, it accepts the fundamental distinction between and commodities, and assumes that commodities as well as are observable and measurable.2 The distinction between technology and tastes follows unambiguously from that between and commodities. In orthodox demand theory the household's preference ordering is defined over the goods and welfare analysis is based on those preferences. The cost-ofliving index is defined as the ratio of the minimum expenditures required to attain a particular indifference curve of this preference ordering under two price regimes. In the household production model the preference ordering over the commodity space provides a corresponding basis for welfare evaluation. One way to extend the notion of the cost-of-living index to the framework is to define it as the ratio of the minimum expenditures required to attain a par