Distributional effects in household models: separate spheres and income pooling.

We derive distributional effects for a non-cooperative alternative to the unitary model of household behaviour. We consider the Nash equilibria of a voluntary contributions to public goods game. Our main result is that, in general, the two partners either choose to contribute to different public goo...

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Hauptverfasser: Browning, M, Chiappori, P, Lechene, V
Format: Working paper
Sprache:English
Veröffentlicht: Department of Economics (University of Oxford) 2006
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author Browning, M
Chiappori, P
Lechene, V
author_facet Browning, M
Chiappori, P
Lechene, V
author_sort Browning, M
collection OXFORD
description We derive distributional effects for a non-cooperative alternative to the unitary model of household behaviour. We consider the Nash equilibria of a voluntary contributions to public goods game. Our main result is that, in general, the two partners either choose to contribute to different public goods or they contribute to at most one common good. The former case corresponds to the separate spheres case of Lundberg and Pollak (1993). The second outcome yields (local) income pooling. A household will be in different regimes depending on the distribution of income within the household. Any bargaining model with this non-cooperative case as a breakdown point will inherit the local income pooling. We conclude that targeting benefits such as child benefits to one household member may not always have an effect on outcomes.
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spelling oxford-uuid:5e53dbb6-1a13-4896-a2cf-b47c95ec2ca92022-03-26T17:39:59ZDistributional effects in household models: separate spheres and income pooling.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:5e53dbb6-1a13-4896-a2cf-b47c95ec2ca9EnglishOxford University Research Archive - ValetDepartment of Economics (University of Oxford)2006Browning, MChiappori, PLechene, VWe derive distributional effects for a non-cooperative alternative to the unitary model of household behaviour. We consider the Nash equilibria of a voluntary contributions to public goods game. Our main result is that, in general, the two partners either choose to contribute to different public goods or they contribute to at most one common good. The former case corresponds to the separate spheres case of Lundberg and Pollak (1993). The second outcome yields (local) income pooling. A household will be in different regimes depending on the distribution of income within the household. Any bargaining model with this non-cooperative case as a breakdown point will inherit the local income pooling. We conclude that targeting benefits such as child benefits to one household member may not always have an effect on outcomes.
spellingShingle Browning, M
Chiappori, P
Lechene, V
Distributional effects in household models: separate spheres and income pooling.
title Distributional effects in household models: separate spheres and income pooling.
title_full Distributional effects in household models: separate spheres and income pooling.
title_fullStr Distributional effects in household models: separate spheres and income pooling.
title_full_unstemmed Distributional effects in household models: separate spheres and income pooling.
title_short Distributional effects in household models: separate spheres and income pooling.
title_sort distributional effects in household models separate spheres and income pooling
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AT chiapporip distributionaleffectsinhouseholdmodelsseparatespheresandincomepooling
AT lechenev distributionaleffectsinhouseholdmodelsseparatespheresandincomepooling