Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34114 
Authors: 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2137
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We adopt the collective approach to consumer behavior with egoistic agents, and assume that the household consumption is either private or public. We then show that (i) household demands have to satisfy testable constraints and (ii) some elements of the decision process can be retrieved from observed behavior. These results are based on a conditional demand ('m-demand') framework in which household demands are directly derived from the marginal rates of substitution. Finally, we present an empirical application using the U.S. Consumer Expenditure Survey. Overall, the data turn out to be consistent with the theoretical model.
Subjects: 
collective decision
intra-household distribution
demand analysis
private good
public good
Lindahl price
JEL: 
D11
D12
H41
Document Type: 
Working Paper

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