Club Theory and Household Formation

CER-ETH - Center of Economic Research at ETH Zurich, Working Paper No. 09/110

30 Pages Posted: 18 Jul 2009

See all articles by Hans Gersbach

Hans Gersbach

ETH Zurich - CER-ETH -Center of Economic Reseaarch; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Hans H. Haller

Virginia Polytechnic Institute & State University - Department of Economics

Date Written: July 2009

Abstract

The relationship between our general equilibrium model with multi-member households and club models with multiple private goods is investigated. The main distinction in the definitions consists of the equilibrium concepts. As a rule, competitive equilibria among households where no group of consumers can benefit from forming a newhousehold and valuation equilibria prove equivalent in the absence of consumption externalities, but not in their presence.

Keywords: Household Behavior, Household Formation, General Equilibrium, Clubs

JEL Classification: D13, D50, D62, D71

Suggested Citation

Gersbach, Hans and Haller, Hans H., Club Theory and Household Formation (July 2009). CER-ETH - Center of Economic Research at ETH Zurich, Working Paper No. 09/110. Available at SSRN: https://ssrn.com/abstract=1434383 or http://dx.doi.org/10.2139/ssrn.1434383

Hans Gersbach (Contact Author)

ETH Zurich - CER-ETH -Center of Economic Reseaarch ( email )

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CESifo (Center for Economic Studies and Ifo Institute)

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Centre for Economic Policy Research (CEPR)

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Hans H. Haller

Virginia Polytechnic Institute & State University - Department of Economics ( email )

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Blacksburg, VA 24061
United States
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