An experimental design using treatments of a voluntary contribution mechanism is used to test household efficiency. Efficiency is decisively rejected in all treatments contrary to the assumption of most household models. Information on initial endowments of spouses improves efficiency only in...

Many governments have tried to stabilize commodity prices based on the widespread belief that households in developing countries – especially poorer ones – value price stability, defined here as the lack of fluctuations around a mean price level. We derive a measure of multivariate price...