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Independent Individual Decision-Makers in Household Models and the New Home Economics

Author

Listed:
  • Grossbard, Shoshana

    (San Diego State University)

Abstract
Much of the recent literature in household economics has been critical of unitary models of household decision-making. Most alternative models currently used are bargaining models and consensual models, including collective models. This paper discusses another alternative: independent individual models of decision-making that don't make any specific assumptions of jointness of decision-making in households. Unitary models are typically associated with Gary Becker even though most of Becker’s own analyses of the family did not use his unitary model. This is especially the case with the specifically independent individual models presented in his theory of marriage. Decision-making models assuming independent individual household members in the Becker tradition are reminiscent of models of labor markets in which firms and workers are independent decision-makers. As basis for econometric estimations, such models may be preferable to models imposing the structure of a game or a household welfare function.

Suggested Citation

  • Grossbard, Shoshana, 2010. "Independent Individual Decision-Makers in Household Models and the New Home Economics," IZA Discussion Papers 5138, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp5138
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    File URL: https://docs.iza.org/dp5138.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    3. Mazzutti, Caio Cícero Toledo Piza da Costa, 2016. "Three essays on the causal impacts of child labour laws in Brazil," Economics PhD Theses 0616, Department of Economics, University of Sussex Business School.
    4. Daniel Wheatley & Zhongmin Wu, 2014. "Dual careers, time-use and satisfaction levels: evidence from the British Household Panel Survey," Industrial Relations Journal, Wiley Blackwell, vol. 45(5), pages 443-464, September.
    5. Man Si, 2015. "Intrafamily bargaining and love," Review of Economics of the Household, Springer, vol. 13(4), pages 771-789, December.
    6. Dan Wheatley and Zhongmin Wu, 2011. "Work, Inequality, and the Dual Career Household," NBS Discussion Papers in Economics 2011/03, Economics, Nottingham Business School, Nottingham Trent University.
    7. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data," Review of Economics of the Household, Springer, vol. 10(3), pages 395-421, September.

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    More about this item

    Keywords

    Gary Becker; household model; unitary model; marriage; labor;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • J00 - Labor and Demographic Economics - - General - - - General

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