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A Simple Approach to Investigate Intrahousehold Allocation of Private and Public Goods

Olivier Donni1,2,3

1 Théorie Économique, Modélisation et Applications · 2 Equipes Traitement de l'Information et Systèmes · 3 CY Cergy Paris Université

The Review of Economics and Statistics 2009

We adopt the collective approach to consumer behavior with egoistic agents and assume that household consumption is either private or public. We then show that (1) household demand functions have to satisfy testable constraints and (2) some elements of the decision process can be retrieved from observed behavior. These results are based on a conditional demand (m-demand) framework in which household demand functions are directly derived from the individual marginal rates of substitution. Finally, we present an empirical illustration of these theoretical results using the U.S. Consumer Expenditure Survey.

DOI
10.1162/rest.91.3.617
Volume
91 (3)
Pages
617-628
Language
en
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