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IFS Working Papers
September 2006 W06/19
Article
Estimating a collective household model with survey data on financial satisfaction
Type: IFS Working Papers
Authors: Rob Alessie, Thomas F Crossley and Vincent Hildebrand
ISSN: 1742-0415
Volume, issue, pages: 48 pp.
JEL classification: D12, D13, I31
Keywords: Consumption, returns to scale, collective household models

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We estimate a collective household model with survey data on financial satisfaction from the European Community Household Panel. Our estimates suggest that cohabitating individuals enjoy returns to scale in consumption that are towards the larger end of the range of estimates reported in the literature. They also suggest that the share of household income provided by the female partner is a significant determinant of her share of household consumption in most countries of the countries we study.

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