Intrahousehold Resource Allocation in Cote D'Ivoire: Social Norms, Separate Accounts and Consumption Choices

52 Pages Posted: 22 Jul 2003

See all articles by Esther Duflo

Esther Duflo

Massachusetts Institute of Technology (MIT) - Department of Economics; Abdul Latif Jameel Poverty Action Lab (J-PAL); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); Bureau for Research and Economic Analysis of Development (BREAD)

Christopher Udry

Northwestern University

Multiple version iconThere are 2 versions of this paper

Date Written: June 2003

Abstract

In Cote d'Ivoire, as in much of Africa, husbands and wives farm different crops on separate plots. These different crops are differentially sensitive to particular kinds of rainfall shocks. We find that conditional on overall household expenditure, the composition of expenditure is sensitive to the gender of the recipient of a rainfall shock. For example, rainfall shocks associated with high women's income shift expenditure towards food. Social norms constrain the use of profits from yam cultivation, which is carried out by men. Correspondingly, we find that rainfall-induced fluctuations in income from yams are transmitted to expenditures on education and food, not to expenditures on private goods. We reject the hypothesis of complete insurance within households, even with respect to publicly observable weather shocks. Different sources of income are allocated to different uses depending upon both the identity of the income earner and upon the origin of the income.

Keywords: Intra-household Allocation, Insurance, Social Norms, Mental Accounts

JEL Classification: O12, D13

Suggested Citation

Duflo, Esther and Udry, Christopher, Intrahousehold Resource Allocation in Cote D'Ivoire: Social Norms, Separate Accounts and Consumption Choices (June 2003). Yale University Economic Growth Center Discussion Paper No. 857. Available at SSRN: https://ssrn.com/abstract=427064

Esther Duflo

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

Cambridge, MA
United States

HOME PAGE: http://www.povertyactionlab.org/

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Bureau for Research and Economic Analysis of Development (BREAD) ( email )

Duke University
Durham, NC 90097
United States

Christopher Udry (Contact Author)

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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