Household behavior and individual autonomy: A Lindahl approach

A comprehensive model of economic household decision is presented which incorporates both fully cooperative and fully non-cooperative variants, parameterized by the income distribution, as well as a semi-cooperative variant, parameterized in addition by a vector B, representing the degrees of individual autonomy. In this comprehensive model, the concept of "household B-equilibrium" is introduced through the reformulation of the Lindahl equilibrium in strategic terms. Existence is proved and some generic properties of the household B-equilibrium derived. An example is given to illustrate. Finally a particular decomposition of the pseudo-Slutsky matrix is derived and the testability of the various models discussed.