Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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ESTIMATING CONSUMPTION ECONOMIES OF SCALE, ADULT EQUIVALENCE SCALES, AND HOUSEHOLD BARGAINING POWER


Category: Econometrics
INTRAHOUSEHOLD ALLOCATION II
Tuesday 27th August 2002, 14:30 - 16:00, Room: 1.3
Session Chair(s): Valerie Lechene, University of Oxford, UNITED KINGDOM

Presenter(s): Chiappori, Pierre-Andre

Co-Author(s): Browning, Martin and Lewbel, Arthur

Keyword(s): adult equivalence scales, barton scales, collective model, consumer demand, demand systems, economies of scale, household bargaining

JEL(s): C30, D11, D12, I31, J12

Abstract:

How much money does a couple save on consumption by living together versus living apart? What percentage of a married couple's expenditures are controlled by the husband? We propose a model of household behavior that permits identification and estimation of concepts like these. We model households in terms of the utility functions of its members and a consumption technology function. We demonstrate generic identification of the model, and hence of equivalence scales, consumption economies of scale, household members' bargaining power and other related concepts. Our empirical application of the model uses data from the UK Family Expenditure Surveys.


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Paper Reference Number: 448

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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