Working Paper BETA #2011-19

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Title : Household behavior and individual autonomy: A Lindahl approach.

Author(s) : Claude d’Aspremont, Rodolphe Dos Santos Ferreira

Abstract : A comprehensive model of economic household decision is presented which incorporates both fully cooperative and fully non-cooperative variants, parameterized by the income distribution, as well as a semi-cooperative variant, parameterized in addition by a vector B, representing the degrees of individual autonomy. In this comprehensive model, the concept of "household B-equilibrium" is introduced through the reformulation of the Lindahl equilibrium in strategic terms. Existence is proved and some generic properties of the household B-equilibrium derived. An example is given to illustrate. Finally a particular decomposition of the pseudo-Slutsky matrix is derived and the testability of the various models discussed.

Key-words : Intra-household allocation, household financial management, degree of autonomy, Lindahl prices, local income pooling, separate spheres.

JEL Classification : D10, C72, H41