A Sharing Model of the Household: Explaining the Deaton-Paxson Paradox and Computing Household Indifference Scales

Arbeitspapier

This paper presents a new model of the household that is able to explain a variety of consumption patterns that existing models cannot describe, most notably, those associated with the Deaton and Paxson (1998) paradox. The most distinctive feature of this model is the presence of common-pool goods (rival and non-excludable) previously ignored in the literature. Under regularity conditions, the model can be interpreted as a hybrid between non-cooperative and a collective models of the household. Empirically, the paper revisits the Deaton-Paxson paradox exploiting household splits in longitudinal data and computes the elusive indifference scales coefficients.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: GLO Discussion Paper ; No. 166

Classification and Topics

• Classification: Wirtschaft ; Household Production and Intrahousehold Allocation ; Marriage; Marital Dissolution; Family Structure; Domestic Abuse ; Economic Development: Human Resources; Human Development; Income Distribution; Migration
• Subject: sharing model ; collective model ; intra-household allocation ; Deaton-Paxson paradox ; household economies of scale ; indifference scales

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gutierrez, Federico H.
• Event: Veröffentlichung
• (who): Global Labor Organization (GLO)
• (where): Maastricht
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/173217
• Last update: 10.03.2025, 11:42 AM CET