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Author: | Cherchye, L. Demuynck, T. Rock, B. De |
Title: | Revealed preference analysis of non-cooperative household consumption |
Journal: | Economic Journal
2011 : SEP, VOL. 121:555, p. 1073-1096 |
Index terms: | consumption public goods mathematical models integer programming household economics empirical research surveys Russia |
Language: | eng |
Abstract: | A revealed preference approach is developed to analyze non-unitary and non-cooperative (or Pareto efficient) household consumption behaviour. Global necessary and sufficient conditions are derived for data consistency with the model. We show that the conditions can be verified by means of rather straightforward mixed integer programming methods, particularly attractive from the empirical analysis perspective. Our framework extends to tests for separate spheres and joint public goods contribution. An application to data obtained from the Russia Longitudinal Monitoring Survey illustrates the empirical relevance of the non-cooperative consumption model. |
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