Arbeitspapier

Household consumption when marriage is stable

We develop a novel framework to analyze the structural implications of the marriage market for household consumption. We define a revealed preference characterization of efficient household consumption when the marriage is stable. Stability means that the marriage matching is individually rational and has no blocking pairs. We characterize stable marriage with intrahousehold (consumption) transfers but without assuming transferable utility. We show that our revealed preference characterization generates testable conditions even with a single consumption observation per household and heterogeneous individual preferences across households. The characterization also allows for identifying the intrahousehold decision structure (including the sharing rule) under the same minimalistic assumptions. An application to Dutch household data demonstrates the usefulness of our theoretical results. We find that the female gets a higher income share when her relative wage increases, which we can give a structural interpretation in terms of outside options from marriage that vary with individual wages.

Sprache
Englisch

Erschienen in
Series: IFS Working Papers ; No. W14/26

Klassifikation
Wirtschaft
Semiparametric and Nonparametric Methods: General
Consumer Economics: Theory
Bargaining Theory; Matching Theory
Thema
marriage market
stable matching
Pareto efficient household consumption
testable implications
sharing rule identification
preference heterogeneity

Ereignis
Geistige Schöpfung
(wer)
Cherchye, Laurens
Demuynck, Thomas
De Rock, Bram
Vermeulen, Frederic
Ereignis
Veröffentlichung
(wer)
Institute for Fiscal Studies (IFS)
(wo)
London
(wann)
2014

DOI
doi:10.1920/wp.ifs.2014.1426
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Cherchye, Laurens
  • Demuynck, Thomas
  • De Rock, Bram
  • Vermeulen, Frederic
  • Institute for Fiscal Studies (IFS)

Entstanden

  • 2014

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