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Author: Laurens Cherchye
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Laurens Cherchye
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author:
Publisher:
ISBN:
Category : Electronic books
Languages : en
Pages : 44
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Book Description
Recent advances in the collective model literature suggest ways to estimate the complete allocation of resources within households, using assignable goods and assuming adult preference similarity across demographic groups (or across spouses). While it makes welfare analysis at the individual level possible, the predictive power of the model is unknown. We propose the first validation of this approach, exploiting a unique dataset from Bangladesh in which the detailed expenditure on private goods by each family member is collected. Individualized expenditure allows us to test the identifying assumptions and to derive ‘observed’ resource sharing within families, which can be compared to the resource allocation predicted by the model. Sharing between parents and children is well predicted on average while the model detects key aspects like the extent of pro-boy discrimination. Results overall depend on the identifying good: clothing provides the best t compared to other goods as it best validates the preference-similarity assumption. The model leads to accurate measures of child and adult poverty, indicating the size and direction of the mistakes made when using the traditional approach based on per adult equivalent expenditure (i.e. ignoring within-household inequality). This assessment of existing approaches to measure individual inequality and poverty is crucial for both academic and policy circles and militates in favor of a systematic use of collective models for welfare analyses.
Author: Laurens Cherchye
Publisher: Foundations & Trends
ISBN: 9781601985361
Category :
Languages : en
Pages : 90
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Book Description
Collective Household Consumption Behavior: Revealed Preference Analysis presents a nonparametric `revealed preference' methodology for analyzing collective consumption behavior in practical applications, while possibly accounting for externalities, public consumption and the use of assignable quantity information. Collective Household Consumption Behavior: Revealed Preference Analysis considers two types of collective models: The general collective model considers general preferences of the individual household members, which allow for externalities and public consumption within the household. The special collective models that do not allow for consumption externalities. After the introduction, section 2 sets the stage by introducing the revealed preference characterizations of the unitary model. Section 3 presents a collective model that allows for general individual preferences and discusses its revealed preference characterization. Sections 4 and 5 show how to bring this theoretical characterization to observational data. More specifically, Section 4 introduces the mixed integer programming characterizations for special collective models that impose restrictions on the household members' preferences. Section 5 does the same for the general collective model. Throughout Section 2 to Section 5, the authors illustrate the most relevant concepts by means of numerical examples. In Section 6 we subsequently illustrate our main results for data drawn from the Russian Longitudinal Monitoring Survey.
Author: Laurens Cherchye
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Recent advances in the collective model literature suggest ways to estimate the complete allocation of resources within households, using assignable goods and assuming adult preference similarity across demographic groups (or across spouses). While it makes welfare analysis at the individual level possible, the predictive power of the model is unknown. We propose the first validation of this approach, exploiting a unique dataset from Bangladesh in which the detailed expenditure on private goods by each family member is collected. Individualized expenditure allows us to test the identifying assumptions and to derive 'observed' resource sharing within families, which can be compared to the resource allocation predicted by the model. Sharing between parents and children is well predicted on average while the model detects key aspects like the extent of pro-boy discrimination. Results overall depend on the identifying good: clothing provides the best t compared to other goods as it best validates the preference-similarity assumption. The model leads to accurate measures of child and adult poverty, indicating the size and direction of the mistakes made when using the traditional approach based on per adult equivalent expenditure (i.e. ignoring within-household inequality). This assessment of existing approaches to measure individual inequality and poverty is crucial for both academic and policy circles and militates in favor of a systematic use of collective models for welfare analyses.
Author: Laurens Cherchye
Publisher:
ISBN:
Category :
Languages : en
Pages : 30
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Book Description
We propose a method to identify bounds (i.e. set identification) on the sharing rule for a general collective household consumption model. Unlike the effects of distribution factors, it is well known that the level of the sharing rule cannot be uniquely identified without strong assumptions on preferences across households of different compositions. Our new results show that, though not point identified without these assumptions, bounds on the sharing rule can still be obtained. We get these bounds by applying revealed preference restrictions implied by the collective model to the household's continuous aggregate demand functions. We obtain informative bounds even if nothing is known about whether each good is public, private, or assignable within the household, though having such information tightens the bounds. An empirical application demonstrates the practical usefulness of our method. -- collective model ; consumer demand ; revealed preferences ; sharing rule ; identification ; bounds
Author:
Publisher: World Bank Publications
ISBN:
Category : Households
Languages : en
Pages : 40
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Book Description
A case for shifting from the unitary to the collective model of the household -- in which the household may be viewed as a factory in which individuals are motivated at times by altruism, at times by self- interest, and often by both.
Author: Martin Browning
Publisher: Cambridge University Press
ISBN: 1107728924
Category : Business & Economics
Languages : en
Pages : 511
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Book Description
The family is a complex decision unit in which partners with potentially different objectives make consumption, work and fertility decisions. Couples marry and divorce partly based on their ability to coordinate these activities, which in turn depends on how well they are matched. This book provides a comprehensive, modern and self-contained account of the research in the growing area of family economics. The first half of the book develops several alternative models of family decision making. Particular attention is paid to the collective model and its testable implications. The second half discusses household formation and dissolution and who marries whom. Matching models with and without frictions are analyzed and the important role of within-family transfers is explained. The implications for marriage, divorce and fertility are discussed. The book is intended for graduate students in economics and for researchers in other fields interested in the economic approach to the family.
Author: Elnaz Hajebi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In the theory of microeconomics, in discussions related to consumer behavior, it is usually assumed that the household acts as a decision-making unit like an individual, and for a household, a budget constraint and a utility function are considered. As a result, only the general behavior of the household will be observable and analyzed. Since the 1980s, this method, which is called the Unitary Household Model, has been criticized theoretically and empirically, and issues such as the inequality of household members have been raised. In contrast to the Unitary Household model, Collective Household Model was proposed in consumer behavior. According to this method, in multi-member households, each member has their own preferences, and what can be important between these members is the intra-household bargaining process. In this article, at first, we will give an introduction including the theoretical foundation and the background of the research, then, while introducing the unitary model as an introduction to collective models, we will examine the collective model and inta-household collective models. At the end, the contents are summarized and suggestions for future research are presented.
Author: Maria Concetta Chiuri
Publisher:
ISBN:
Category :
Languages : en
Pages : 285
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