Individual welfare analysis for collective households

• 成果类型: Article
• 署名作者: Cherchye, Laurens; Cosaert, Sam; De Rock, Bram; Kerstens, Pieter Jan; Vermeulen, Frederic
• 署名单位: KU Leuven; Universite Libre de Bruxelles; KU Leuven; University of Copenhagen; KU Leuven
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2018.08.012
• 发表日期: 2018
• 页码: 98-114
• 关键词: Individual welfare; Collective model; revealed preferences; sharing rule; Money metric welfare index; identification; labor supply

摘要

We propose novel tools for the analysis of individual welfare on the basis of aggregate household demand behavior. The method assumes a collective model of household consumption with the public and private nature of goods specified by the empirical analyst. A main distinguishing feature of our approach is that it builds on a revealed preference characterization of the collective model that is intrinsically nonparametric. We show how to identify individual money metric welfare indices from observed household demand, along with the intrahousehold sharing rule and the individuals' willingness-to-pay for public consumption (i.e. Lindahl prices). The method is easy to use in practice and yields informative empirical results, which we demonstrate through both a simulation exercise and an empirical application to labor supply data drawn from the Panel Study of Income Dynamics. (C) 2018 Elsevier B.V. All rights reserved.