Cherchye, Laurens; De Rock, Bram; Lewbel, Arthur; Vermeulen, Frederic Sharing rule identification for general collective consumption models. (English) Zbl 1419.91431 Econometrica 83, No. 5, 2001-2041 (2015). Summary: We propose a method to set identify bounds on the sharing rule for a general collective household consumption model. Unlike the effects of distribution factors, the level of the sharing rule cannot be uniquely identified without strong assumptions on preferences across households. Our new results show that, though not point identified without these assumptions, strong bounds on the sharing rule can be obtained. We get these bounds by applying revealed preference restrictions implied by the collective model to the household’s continuous aggregate demand functions. We obtain informative bounds even if nothing is known about whether each good is public, private, or assignable within the household, though having such information tightens the bounds. We apply our method to US PSID data, obtaining narrow bounds that yield useful conclusions regarding the effects of income and wages on intrahousehold resource sharing, and on the prevalence of individual (as opposed to household level) poverty. Cited in 5 Documents MSC: 91B42 Consumer behavior, demand theory Keywords:collective model; consumer demand; revealed preferences; sharing rule; identification; bounds PDFBibTeX XMLCite \textit{L. Cherchye} et al., Econometrica 83, No. 5, 2001--2041 (2015; Zbl 1419.91431) Full Text: DOI