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2000•Munich Personal RePEc Archive (Ludwig Maximilian University of Munich)Open access

Rationality in the Joint Allocation of Private and Public Goods

Bernarda Zamora

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Abstract

In this study we assume that household demand for private and public goods are the e¢cient outcomes of the household decission process. From the e¢cient assumption we derive testable properties of these demands and we identify some characteristics of the intrahousehold distribution of the household expenditure. These results extend Chiappori (1988) main results to the case of joint consumption of private and public goods.

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In this study we assume that household demand for private and public goods are the e¢cient outcomes of the household decission process. From the e¢cient assumption we derive testable properties of these demands and we identify some characteristics of the intrahousehold distribution of the household expenditure. These results extend Chiappori (1988) main results to the case of joint consumption of private and public goods.

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Available abstract

In this study we assume that household demand for private and public goods are the e¢cient outcomes of the household decission process. From the e¢cient assumption we derive testable properties of these demands and we identify some characteristics of the intrahousehold distribution of the household expenditure. These results extend Chiappori (1988) main results to the case of joint consumption of private and public goods.

Key concepts: Public good, Rationality, Consumption (sociology), Joint (building), Private good, Economics, Microeconomics, Private consumption

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