Enlarging the collective model of household behaviour: a revealed preference analysis

d'Aspremont-Lynden, Claude;Dos Santos Ferreira, Rodolphe
(2017) , 18 pages

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Authors
  • d'Aspremont-Lynden, ClaudeUCLouvain
    Author
  • Dos Santos Ferreira, RodolpheUniversité de Strasbourg
    Author
Abstract
We use a comprehensive model of strategic household behaviour in which the spouses' expenditure on each public good is decomposed into autonomous spending and coordinated spending à la Lindahl. We obtain a continuum of semi-cooperative regimes parameterized by the relative weights put on autonomous spending, by each spouse and for each public good, nesting full cooperative and non-cooperative regimes as limit cases. Testing is approached through revealed preference analysis, by looking for rationalisability of observed data sets, with the price of each public good lying between the maximum and the sum of the hypothesized marginal willingnesses to pay of the two spouses. Once rationalised, an observed data set always allows to identify the sharing rule, except when both spouses contribute in full autonomy to some public good (a situation of local income pooling).
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Citations

d’Aspremont-Lynden, C., & Dos Santos Ferreira, R. (2017). Enlarging the collective model of household behaviour: a revealed preference analysis (COre Discussion Paper 2017/17). https://hdl.handle.net/2078.5/179109