Intrafamily Bargaining and Household Decisions

Intrafamily Bargaining and Household Decisions
Author :
Publisher : Springer Science & Business Media
Total Pages : 251
Release :
ISBN-10 : 9783642457081
ISBN-13 : 3642457088
Rating : 4/5 (088 Downloads)

Book Synopsis Intrafamily Bargaining and Household Decisions by : Notburga Ott

Download or read book Intrafamily Bargaining and Household Decisions written by Notburga Ott and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: A model of household decisions based on a bargaining approach is developed providing a comprehensive framework for the analysis of family behavior. Treating the family as an economic organization, household behavior is explained by the cooperation of utility maximizing individuals. The difference to traditional microeconomic household models is that theassumption of a joint household utility function is abandoned. Instead of this, a game theoretic approach is used to model family decisions as a result of intrafamily bargaining. Considering the development of the spouses` human capital in a dynamic approach, the long-term effects of intrafamily specialization in market work and work at home are analyzed. Onemajor finding is that in a dynamic setting non-Pareto efficient allocations may result. Empirical tests demonstrate the relevanace of the bargaining approach.


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