Confronting the Robinson Crusoe paradigm with household-size heterogeneity

DSpace/Manakin Repository

Open Research Exeter (ORE)

Confronting the Robinson Crusoe paradigm with household-size heterogeneity

Please use this identifier to cite or link to this item: http://hdl.handle.net/10036/77375

Share:                 



Title: Confronting the Robinson Crusoe paradigm with household-size heterogeneity
Author: Koulovatianos, Christos
Schröder, Carsten
Schmidt, Ulrich
Publisher: Center for Financial Studies, University of Frankfurt
Date Issued: 2008-08
URI: http://hdl.handle.net/10036/77375
Abstract: Modern macroeconomics empirically addresses economy-wide incentives behind economic actions by using insights from the way a single representative household would behave. This analytical approach requires that incentives of the poor and the rich are strictly aligned. In empirical analysis a challenging complication is that consumer and income data are typically available at the household level, and individuals living in multimember households have the potential to share goods within the household. The analytical approach of modern macroeconomics would require that intra-household sharing is also strictly aligned across the rich and the poor. Here we have designed a survey method that allows the testing of this stringent property of intra-household sharing and find that it holds: once expenditures for basic needs are subtracted from disposable household income, household-size economies implied by the remainder household incomes are the same for the rich and the poor.
Type: Working Paper
Description: Authors' draft published as working paper by Center for Financial Studies, University of Frankfurt
Keywords: linear aggregationrepresentative consumerequivalence scalessurvey methodhousehold-size economies


Please note: Before reusing this item please check the rights under which it has been made available. Some items are restricted to non-commercial use. Please cite the published version where applicable.

Files in this item

Files Size Format View
koulovatianos6.pdf 2.278Mb PDF Thumbnail

This item appears in the following Collection(s)

Browse

My Account

Local Links