Title: Collective Household Consumption Behavior: Revealed Preference Analysis (Foundations and Trends (R) in Econometrics) (Foundations and Trends� in Econometrics) [Paperback] Cherchye, Laurens; De Rock, Bram and Vermeulen, Frederic
Publisher: Now Publishers Inc
Publication Date: 2012
Language: English
ISBN 10: 1601985363
ISBN 13: 9781601985361
Binding: Soft cover
Condition: Very Good

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Synopsis

Collective Household Consumption Behavior presents a nonparametric "revealed preference" methodology for analyzing collective consumption behavior in practical applications, while possibly accounting for externalities, public consumption, and the use of assignable quantity information. Collective Household Consumption Behavior considers two types of collective models: • the general collective model considers general preferences of the individual household members, which allow for externalities and public consumption within the household. • the special collective models that do not allow for consumption externalities. After the introduction, Section 2 sets the stage by introducing the revealed preference characterizations of the unitary model. Section 3 presents a collective model that allows for general individual preferences and discusses its revealed preference characterization. Sections 4 and 5 show how to bring this theoretical characterization to observational data. More specifically, Section 4 introduces the mixed integer programming characterizations for special collective models that impose restrictions on the household members' preferences. Section 5 does the same for the general collective model. Throughout Section 2 to Section 5, the authors illustrate the most relevant concepts by means of numerical examples. In Section 6 we subsequently illustrate our main results for data drawn from the Russian Longitudinal Monitoring Survey.

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