The Economies of Scale of Living Together and How They are Shared: Estimates Based on a Collective Household Model
27 Pages Posted: 4 Aug 2009
Abstract
How large are the economies of scale of living together? And how do partners share their resources? The first question is usually answered by equivalence scales. Traditional estimation and application of equivalence scales assumes equal sharing of income within the household. This paper uses data on financial satisfaction to simultaneously estimate the sharing rule and the economy of scale parameter in a collective household model. The estimates indicate substantial scale economies of living together, especially for couples who have lived together for some time. On average, wives receive almost 50% of household resources, but there is heterogeneity with respect to the wives' contribution to household income and the duration of the relationship.
Keywords: collective household models, sharing rule, equivalence scale, subjective data
JEL Classification: D12, C21, D19
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Relational Contracts, Taxation and the Household
By Patricia F. Apps and Ray Rees
-
Collective Labour Supply: Heterogeneity and Nonparticipation
-
Collective Labour Supply: Heterogeneity and Non-Participation
-
Household Intertemporal Behavior: A Collective Characterization and a Test of Commitment
-
Gender Based Taxation and the Division of Family Chores
By Alberto F. Alesina, Andrea Ichino, ...
-
Gender Based Taxation and the Division of Family Chores
By Alberto F. Alesina, Andrea Ichino, ...
-
Gender Based Taxation and the Division of Family Chores
By Alberto F. Alesina, Andrea Ichino, ...