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Behavioral Economics

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2012

Bargaining

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Full-Text Articles in Social and Behavioral Sciences

A Note On Separability And Intra-Household Resource Allocation In A Collective Household Model, Tomoki Fujii, Ryuichiro Ishikawa Mar 2012

A Note On Separability And Intra-Household Resource Allocation In A Collective Household Model, Tomoki Fujii, Ryuichiro Ishikawa

Research Collection School Of Economics

We consider a collective model of a household in which each member has a utility function satisfying the weak separability condition. We show that the separability at the individual level carries over to the household level and that the allocation of private goods in any Pareto-efficient allocation can be supported as a Pareto-efficient allocation of private sub-problem. We also provide the necessary and sufficient condition for the Pareto weight for the private sub-problem to move in the same direction as the household Pareto weight.