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Intra-Household Resource Allocation and Familial Ties

56 Pages Posted: 26 May 2017  

Harounan Kazianga

Oklahoma State University - Stillwater

Zaki Wahhaj

University of Kent, Canterbury - Department of Economics; University of Namur

Date Written: November 2016

Abstract

In this paper, we investigate the link between intra-household resource allocation and familial ties between household members. We show that, within the same geographic, economic and social environments, households where members have 'stronger' familial ties (nuclear family households) achieve near Pareto efficient allocation of productive resources and Pareto efficient allocation of consumption while households with 'weaker' familial ties (extended family households) do not. We propose a theoretical model of the household based on the idea that altruism between household members vary with familial ties which generates predictions consistent with the observed empirical patterns.

Keywords: Intra-household Allocation, Social Norms, Extended Families, Altruism, Household Farms, Income Shocks, Risk-sharing, Consumption Smoothing

JEL Classification: O12, D13, Q1

Suggested Citation

Kazianga, Harounan and Wahhaj, Zaki, Intra-Household Resource Allocation and Familial Ties (November 2016). Centro Studi Luca d'Agliano Development Studies Working Paper No. 408. Available at SSRN: https://ssrn.com/abstract=2973992 or http://dx.doi.org/10.2139/ssrn.2973992

Harounan Kazianga (Contact Author)

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

Zaki Wahhaj

University of Kent, Canterbury - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

University of Namur ( email )

8 Rempart de la Vierge
Namur, 5000
Belgium

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