The economies of scale of living together and how they are shared: estimates based on a collective household model

Abstract

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Analysis of Economies of Scale in Czech Households Based on Different Approaches

“…If there is restriction about equal sharing of consumption in couples, then the counsumption of one member is: (4) Then the utility function of each member of couples is as follows: In this approach the half of returns to scale factor identifies the equivalence scale under restriction of equal sharing of consumption. It measures the proportion of the household income of a couple, which a single needs to be as well off.…”

“…According to Bütikofer and Gerfin (2009) this expression reduces to individual utility for single households given in equation (1).…”

Income Sharing within Households: Evidence from Data on Financial Satisfaction

“…The equal sharing hypothesis has already been tested and rejected by the use of data on financial satisfaction. Bütikofer and Gerfin [25], for example, estimate the effect of female income share on sharing between men and women, and Alessie et al [26] did the same for the effect of the female hourly wage ratio. They interpreted significant interaction effects for the female income contribution, in couples as a distribution factor for income sharing, and found that a higher income contribution of the female relative to her partner both increases her and lowers his financial satisfaction.…”

“…For single households, this is the household income; for individuals in multi-person households, it is some share of the household income. Note that the sum of shares may exceed the household income because of the economies of scales of living together [25]. 6 According to the idea of adaptation [30], I assume that expectations about welfare levels are tailored towards the household's scope, i.e., expected welfare-effective income y * ih is a function 0 < f (.)…”

For Worse? Financial Hardships and Intra-Household Resource Allocation among Australian Couples

“…It may also be distributed unequally within households based on the gender and other characteristics of each member. A large body of research has examined how personal and household characteristics-especially spouses' preferences and bargaining power-affect intrahousehold distributions of consumption expenditures (Blacklow and Ray, 2003;Browning et al, 2013;Maitra and Ray, 2005), labour supply (Mariotti et al, 2016;Rapoport et al, 2011), savings (Lee and Pocock, 2007), wealth (Grabka et al, 2015), and financial satisfaction (Bonke and Browning, 2009;Bütikofer and Gerfin, 2017). Many of these studies have used the collective household model framework (c.f.…”