Tuesday 13
D1 - Household behavior and family economics II
Chair: Weili Ding
› 14:00 - 14:25 (25min)
› Room 522 - S. Bernhardt
Optimal Intra-Household Decision Structure
Marie Boltz  1, *@  , Jean-Marie Baland  2, *@  , Roberta Ziparo  3, *@  , Catherine Guirkinger  2, *@  
1 : Pontificia Universidad Javeriana  -  Website
2 : CRED - UNamur
3 : Groupement de Recherche en Économie Quantitative d'Aix-Marseille  (GREQAM)  -  Website
Université de la Méditerranée - Aix-Marseille II, Université Paul Cézanne - Aix-Marseille III, École des Hautes Études en Sciences Sociales [EHESS], CNRS : UMR7316, Ecole des Hautes Etudes en Sciences Sociales (EHESS)
Centre de la Charité, 2 rue de la Charité, 13236 Marseille cedex 02 -  France
* : Corresponding author

This paper develops a model of the allocation of authority in intra-household decision-making. We analyze the cases (i) when decisions are decided unilaterally by one spouse, (ii) when the household head delegates his or her authority to the other spouse, (iii) when both spouses bargain over the investment decisions. Comparing the various scenarios, we derive testable predictions about the optimal decision structure depending on various parameters such as time preferences, degree of congruence of partners over a project, opportunity cost of information search. We bring these predictions to the data, relying on a detailed first-hand survey in Cameroon.

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