First of all, about 37.7 percent couples choose to invest in the business that generates higher profits instead of choosing lower-return business and keeping the money to themselves. 0000000596 00000 n There is growing evidence that the unitary household model fails to describe intrahousehold decision making. We conduct a game among 731 couples in Uganda to investigate whether couples have different preference over higher income and greater control over that income. Moreover, 52 percent of the female respondents are trusted by their spouses, while 41.1 percent of the male respondents are trusted by their spouses, suggesting that male participants are more likely to choose higher income yet female respondents are more likely to choose higher control over income. P. A. A. If you invest in business A, the money will be doubled to 4,000 USH. The impact of household bargaining is also observed in domestic violence. P. A Department of Economics, University of Washington, The Impact of Microfinance on Decision-making Agency: Evidence from South India, The Political Economy of Gender: Explaining Cross-national Variation in Household Bargaining, Divorce, and Gender Voting Gap, Intra-household Efficiency: An Experimental Study from Ethiopia, Conflicts over Credit: Reevaluating the Empowerment Potential of Loans to Women in Rural Bangladesh, Household Bargaining Power and Agricultural Supply Response: Evidence from Ethiopian Coffee Growers, Do Husbands and Wives Pool Their Resources? M. The first section discusses the unitary approach, in which the individual behavior model is simply transposed to the household. commonly known as the unitary model. Recent research lends strong support to an intrahousehold model that considers the existence of other individuals in the households that, through a bargaining process, play a complex role in household decision making. . 1Introduction There is increasing consensus in the literature on household behaviour that we cannot model the decisions of a many person household as though the household had a set of stable and transitive preferences (the so-called ‘uni- Intrahousehold Productive Inefficiency in Burkina Faso: Can Experimental Inefficiency Measures Explain Differences in Household Income? A Second, the amount offered in the game is relatively large at about half a day's income for the average person. About 82 percent of participants have completed primary school education, and 6.17 percent of participants have completed secondary school or have higher education level. De Brauw et al. Theoretical models have different assumptions about the intrahousehold decision process. A valuable alternative to the traditional model is the collective approach to household behaviour. C After completing a simple survey of respondent's demographic and income we asked individuals if we can meet with their spouse the next day to ask the same questions. When choices are observable, men commit money to consumption for their own benefit, but when spouses are able to communicate, men put money into their wife's account. In sum, 731 married couples participated in the game; 60 percent of the primary participants are female. In the same line, Bittman et al. Carlsson et al. Estimating the unitary model we obtain strikingly different 'preference' parameters depending on the type of taxation. 1996; Kabeer 2001), while others find that microcredits or any means that make women richer increase it (Goetz and Sen Gupta 1996; Rahman 1999; Bloch and Rao 2002; Balasubramanian 2013). A. In this case, the program is one that endows men with a new asset because the program is provided in certain random areas, and in Bangladesh married women moved in with their husbands. Oreffice (2007) studies the impact of legalization of abortion in some states of the United States and finds that it affects household bargaining, and its effect is a decrease in labor supply of married women and an increase in their husband's labor supply. Yilmazer Park (2007) studies the resource allocation of children's nutrition and education in Indonesia; he shows that for children's nutrition the unitary model is rejected while for education the results are mixed. J However, what determines the type of household decision-making process is still unclear, and future studies can move forward in this direction to explore the factors impacting different intrahousehold decision-making models. Rubalcava et al. Notes: Trust spouse takes the value of 1 if they sent the money to their spouse. And Ashraf (2009) looks at the effect of observability and communication on financial choices of married individuals in the Philippines. Ashraf For Côte d'Ivoire, Duflo and Udry (2004) show that rain shocks can affect household bargaining power, leading to an impact on expenditure. Fertility, education, health, and nutrition of children have also been found to be affected by household bargaining. , Quisumbing A.. Mani 0000001653 00000 n This presents some validation of the unitary household model. 122 0 obj<>stream the household utility function in any standard unitary model. expenditure in the sharing rule cannot be used as a test for a unitary model. 0000002686 00000 n weekly bills. However, this approach is hindered by a lack of reliable theoretical justifications for the necessary aggregation of individual preferences and by the rejection of the predictions it generates. The unitary model begins with a two-person household, consisting of a husband (m) and a wife (f), making joint decisions about consumption and time allocation. (2007) present evidence for Ethiopia, measuring bargaining power as the value of livestock each spouse would have in the event of a divorce. startxref (2014), who runs an experiment with couples in Ethiopia where information about endowments is varied. We then discuss the results of an artefactual experiment conducted in Uganda with spouses in order to test whether household members maximize common preferences, or instead are willing to pay a significant cost to hide money from their spouse. There are 2.82 children in each household on average. Moreover, women tend to prefer higher control over income than men, and this indicates that women are more likely to feel unsafe to let their husbands dispose of money at will. Polato e Fava 4 unitary household model. G. J One implication of household bargaining is on household expenditure. He finds that information improves efficiency in only some treatments, meaning information is context dependent.
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