Income and outcomes: a structural model of intrahousehold allocation

M. Browning, F. Bourguignon, P. A. Chiappori, V. Lechene

Research output: Contribution to journalArticle

Abstract

There is evidence from several sources that one cannot treat many-person households as a single decision maker. If this is the case, then factors such as the relative incomes of the household members may affect the final allocation decisions made by the household. A method is developed of identifying how "incomes affect outcomes' given conventional family expenditure data. The basic assumption is that household decision processes lead to efficient outcomes. A method is applied to a sample of Canadian couples with no children. The final allocations of expenditures on each partner depend significantly on their relative incomes and ages and on the level of lifetime wealth. -Authors

Original languageEnglish (US)
Pages (from-to)1067-1096
Number of pages30
JournalJournal of Political Economy
Volume102
Issue number6
DOIs
StatePublished - Jan 1 1994

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ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Browning, M., Bourguignon, F., Chiappori, P. A., & Lechene, V. (1994). Income and outcomes: a structural model of intrahousehold allocation. Journal of Political Economy, 102(6), 1067-1096. https://doi.org/10.1086/261964