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<p><p><b>Please Note:</b> This paper was updated in July 2007</p><p>We study noncooperative household models with two agents and several voluntarily contributed public goods, deriving the counterpart to the Slutsky matrix and demonstrating the nature of the deviation of its properties from those of a true Slutsky matrix in the unitary model. We demonstrate the importance of distinguishing between cases in which there are and are not jointly contributed public goods and provide results characterising both cases. Demand properties are contrasted with those for collective models and conclusions drawn regarding the possibility of empirically testing the collective model against noncooperative alternatives.</p></p></p>
Authors
Research Fellow University College London
Ian is a Research Fellow of the IFS and a Professor of Economics at UCL. He joined UCL in 1991 and has been attached to the IFS since 1990.
Research Fellow University College London
Valerie, a Research Fellow of the IFS, is a Reader at the University College London, whose research is focused on modelling intra-household behaviour.
Working Paper details
- DOI
- 10.1920/wp.ifs.2007.0701
- Publisher
- IFS
Suggested citation
Lechene, V and Preston, I. (2007). Demand properties in household Nash equilibrium. London: IFS. Available at: https://ifs.org.uk/publications/demand-properties-household-nash-equilibrium (accessed: 20 May 2024).
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