Let's Talk About the Money: Spousal Communication, Expenditures, and Farm Production

19 Pages Posted: 15 Apr 2020

See all articles by Joyce J. Chen

Joyce J. Chen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

LaPorchia Collins

affiliation not provided to SSRN

Date Written: October 2014

Abstract

A burgeoning body of literature highlights asymmetric information among household members. However, little is known about the source of the asymmetry and its effect on efficiency. Using a unique survey of Ghanaian households, we examine the accuracy of spousal cross reports and the effect of discrepancies on farm production. We find that information problems pertain to scale (the quantity of resources) and scope (the distribution of resources), as well as allocation decisions on the margin (Engel curves). Moreover, we find that information asymmetries lead to inefficiency in production, and the effect is equivalent to about 15% of the variation across households.

Keywords: Asymmetric information, intra-household allocation, Engel curve

Suggested Citation

Chen, Joyce J. and Collins, LaPorchia, Let's Talk About the Money: Spousal Communication, Expenditures, and Farm Production (October 2014). American Journal of Agricultural Economics, Vol. 96, Issue 5, pp. 1272-1290, 2014, Available at SSRN: https://ssrn.com/abstract=3574214 or http://dx.doi.org/10.1093/ajae/aau059

Joyce J. Chen (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

HOME PAGE: http://www.aede.osu.edu/people/chen.1276

LaPorchia Collins

affiliation not provided to SSRN

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