We present identification and estimation results for the 'collective' model of labour supply in which there are discrete choices, censoring of hours and non-participation in employment. We derive the collective restrictions on labour supply functions and contrast them with restrictions implied...

This Paper explores the implications of the recent sharp rise in US wage inequality for welfare and the cross-sectional distributions of hours worked, consumption and earnings. From 1967 to 1996 cross-sectional dispersion of earnings increased more than wage dispersion, due to a rise in the...

Labour supply is seen as an output from household production. Given by the physical effort of a person, working in the market also requires specific inputs. This process may be described with the help of a general technology that comprises joint production. At least one of the outputs is labour...

The purpose of this study is to investigate the integration of the relative cost of children to adults and of economies of scale in the context of household’s welfare evaluation. Results derived with empirically-estimated scales show that female-headed households are poorer than male-headed...

Poverty measures often ignore the distribution of resources within families and the gains from joint consumption. In this paper, we estimate the allocation process and adult economies of scale in households from Côte d'Ivoire using a collective model of household consumption. Identification...

An analysis of consumer’s decision making indicates that the weights used for the regional variables considered and included in an index should not vary across regions. Given this, a regional index is computed for the 10 major regions of Greece assuming that all variables incorporated in it...

We explore the link between affluence and well-being using a simple general equilibrium model with a pure Veblen good. Individuals derive utility from the pure Veblen good based solely on how much they consume relative to others. In equilibrium, consumption of the pure Veblen good is the same...

We apply the collective consumption model of Browning et al. (2010) to analyse economic well-being and poverty among the elderly. The model focuses on individual preferences, a consumption technology that captures the economies of scale of living in a couple, and a sharing rule that governs the...

We suggest a new methodology to estimate the share of household income accruing to children. The household behavior is represented according to the collective approach. That is, each household member is characterized by specific preferences. Following the principle of the Rothbarth approach, the...

This paper presents a formalization and modification of Martin Seligman’s concept of full life, employing basic microeconomics. A class of Stone–Geary utility functions is proposed as an analytical tool for scrutinizing individual decision making with respect to a pleasant, engaged and...