Nutrition and Risk Sharing within the Household

32 Pages Posted: 11 Jan 2010

See all articles by Pierre Dubois

Pierre Dubois

University of Toulouse 1 - Toulouse School of Economics (TSE)

Ethan A. Ligon

University of California, Berkeley; Giannini Foundation

Date Written: November 2009

Abstract

Using data on individual consumption from farm households in the Philippines, we construct a direct test of risk-sharing within the household. We contrast the efficient outcomes predicted by the unitary household model with the outcomes we might expect if food consumption delivers not only utils, but also nutrients affecting future productivity. The efficiency conditions which characterize the within-household allocation of food under the unitary model are violated, as consumption responds to earnings shocks. If productivity depends on nutrition, this explains some but not all of the response, as earnings "surprises" have some effect on the cost and composition of diet.

Keywords: Nutrition, Risk sharing, Within Household

JEL Classification: D12, O12

Suggested Citation

Dubois, Pierre and Ligon, Ethan A., Nutrition and Risk Sharing within the Household (November 2009). CEPR Discussion Paper No. DP7574, Available at SSRN: https://ssrn.com/abstract=1533179

Pierre Dubois (Contact Author)

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Ethan A. Ligon

University of California, Berkeley ( email )

207 Giannini Hall #3310
Berkeley, CA 94720-3310
United States

Giannini Foundation

UC Davis
Davis, CA 95616
United States

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