Collective consumption: an application to the passive drinking effect

This study introduces a new collective complete demand system with individual Engel effects that is easy to estimate and permits undertaking policy analysis at the individual rather than household level. Previous estimations of collective demand were limited to single equations. The empirical application investigates the passive drinking effect, that is, whether consumption of alcohol affects the distribution of resources among household members and their level of wellbeing. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and suggest thought-provoking policy implications.     

Inequality and education decisions in developing countries

In this paper we analyze the effect of inequality on school enrollment, preferred tax rate and expenditure per student in developing countries; when parents can choose between child labor, public schooling or private schooling. We present a model in which parents make schooling decisions for their children, weighing the utility benefit of having a child with formal public or private education versus the forgone income from child labor or household work. Parents vote over the preferred tax rate to finance freely provided public education. The utility benefit of an educated child is proportional to expenditure per student, so that there is congestion in public school. We find that when parents can send their children to work or to private school, high inequality leads to exit from public education at both ends of the income distribution. Thus high inequality reduces the support for public education, leading to a low tax rate and expenditure per student. Exit from public education results in both high child labor and a large fraction of students attending private school. In fact there is a threshold level of inequality above which there is no longer support for public education. In addition we explore the implications for the design of foreign aid. The results suggest that foreign aid policies should focus on promoting school attendance rather than increasing school resources, as the later policy might be offset by a reduction in the recipient country’s fiscal effort, with little impact on outcomes.      

Women and poverty: insights from individual consumption in Albania

This paper studies how a society with traditional gender norms and competitive marriage market conditions may favor unequal distribution of resources within households and a consequent increase in female poverty. We propose a method to estimate individual consumption from household expenditure data. After estimating individual consumption, we apply a fuzzy approach for poverty analysis. Compared to standard poverty measures, the approach is less sensitive to changes in the distribution of consumption around the poverty line, generated when accounting for unequal distribution of household resources. The approach, applied to the analysis of individual poverty in Albania, revealed considerable intrahousehold inequality that specifically affects women and is correlated with imbalances in the sex ratio induced by past migrations. This leads to an expected general increase in poverty rates, mainly driven by a previously unperceived issue, female poverty, which emerges as an aspect of concern to consider in future anti-poverty policies.     

Separability between own food production and consumption in Turkey

Complete markets imply the separation of food production and consumption decisions such that they can be modeled to occur sequentially and can be studied independently. Separation is very often assumed implicitly in empirical studies of food demand. If there is such separation, then food sourced within the household should not have any influence upon the budget share of each food group. Using this insight, this paper first develops a procedure to test for the separation of household food production and consumption decisions. Furthermore, it incorporates the testing procedure into the Almost Ideal Demand Systems model and utilizes survey data from 2003 for Turkey for empirical testing. It concludes that the separation assumption is unwarranted for Turkey. Next, it investigates the extent of bias in elasticity estimates when the separation assumption is unwarranted. It concludes that ignoring the nonseparation of consumption and production decisions in rural areas leads to significant overestimation of food expenditure elasticity for dairy products and eggs and own-price elasticity for bread and cereals.     

The Division of Household Labor: Longitudinal Changes and Within‐Couple Variation

This study examined how the division of household labor changed as a function of marital duration and whether within‐couple variation in spouses' relative power and availability were linked to within‐couple variation in the division of labor. On 4 occasions over 7 years, 188 stably married couples reported on their housework activities using daily diaries. Multilevel models revealed that wives' portions of household responsibilities declined over time and that changes in spouses' relative income and work hours were linked to changes in housework allocation. Wives with husbands who perceived greater marital control, on average, did proportionally more housework, and for couples with husbands who had highly autonomous jobs, changes in spouses' relative psychological job involvement were linked to changes in housework allocation. The findings highlight the importance of understanding household division of labor as a life span phenomenon, the distinction between within‐ versus between‐couple associations, and the multidimensional nature of power and availability.     

Gendered economies: Transferring private gender roles into the public realm through rural community development

This paper considers the important issue of women's economic participation in rural community development and regeneration. The paper explores the economic lives and actions of women residents in “Ilston”, a village in the Northumberland Rural Coalfield. The women's narratives illustrate the economic connections between private and public spheres, represented respectively by the household and community-led regeneration initiatives. The connections were realised through a female responsibility for household budget management, which incorporated the protection and maintenance of their personal and household economic status within the community. This role was extended into the public sphere through female responsibility for community group and project fund raising, management and subsequent maintenance of the community group's economic status. This practice formed part of the women's constructed economic identity(ies) within the community, and in turn feminised economic practices regarding community-led development and regeneration in the village.     

ON THE RELATIVE EFFICIENCY OF CASH TRANSFERS AND SUBSIDIES

This paper considers the relative efficiency of cash grants and subsidies when society's goal is to raise the welfare of a household. When the head of the household makes all consumption decisions, a principal-agent problem is created: the head acts as the agent of the government in allocating the transferred resources. Subsidies to commodities with particular characteristics may be a more efficient way to guarantee that benefits are shared within the household. Though related to the old notion of paternalism, this theory leads to more specific predictions regarding the kinds of commodities that can be efficiently subsidized.     

‘It's kind of saving them a job isn't it?’ The consumption work of household recycling

Consumers play an integral role in societal divisions of labour. Rather than simply consume, they frequently perform labour. Incorporating consumers into the division of labour poses a challenge to this foundational and enduring concept, given its traditional focus on the technical division of tasks/skills within a labour process. Yet, insofar as completion of a circuit of production, distribution, exchange and consumption is predicated on consumers undertaking work in order to/after they consume, analysis of the division of labour would be incomplete without their inclusion. This paper uses the case of household recycling to demonstrate the importance of ‘consumption work’ for the organization of the waste management industry in England. By sorting their waste, consumers initiate a new economic process, providing feedstock (such as metals, plastics and paper) which in turn creates jobs/profits within the recycling, processing and manufacturing industries. Consumers also reconfigure public and private sector responsibilities when they sort their recyclable materials from general household waste, revealing the interdependency of consumption work with labour conducted under different socio‐economic relations and across differing socio‐economic domains. This paper makes the case for a renewed conception of division of labour to account for transformations and interconnections between work of different forms within contemporary society.     

On fairness and welfare analysis under uncertainty

This paper investigates the role of fairness, uncertainty, and a “veil of ignorance” in efficient resource allocation. It focuses on the choice of private and public goods, the method of financing, as well as the choice of information available for public decision-making. A fair-equivalent and Pareto efficient allocation is presented using a maximin criterion defined in terms of individual willingness-to-pay. The paper investigates the role of information in public decision making in terms of its implications for both efficiency and fairness. While better information typically generates improved efficiency, it can also contribute to unfair allocations. The effects of asymmetric information are discussed. Received: 4 May 1998/Accepted: 28 February 2002 We would like to thank two anonymous referees for very useful comments on an earlier draft of the paper. The research was supported in part by a Hatch grant from the University of Wisconsin, Madison.     

Regional unemployment,gender, and time allocation of the unemployed

This paper analyzes the relationship between time allocation decisions of the unemployed, gender, and regional unemployment rates. Using two cross-sections from the 2002–2003 and 2009–2010 Spanish Time Use Surveys, we find that higher regional unemployment rates are associated with increases in the time devoted to study by men. Regional unemployment rates are also associated with more time devoted to household production, particularly for unemployed men and women living in a couple, and to less time devoted to leisure, particularly for unemployed men with a working partner and unemployed women not living in a couple. We interpret our findings as evidence favoring consumption smoothing. Higher regional unemployment rates imply a lower availability of jobs for the unemployed, it reduces individual expectations of finding a job, and thus households may try to increase their time spent on household production to reduce market expenditures and thus maintain their consumption constant. Increases in the time devoted to household production during business cycles need to be considered in the analysis of the wellbeing of the unemployed. Consumption smoothing may imply increased wellbeing, but more time devoted to household production is associated with lower experienced utility of individuals throughout the day.     

Comparing Public and Private Sector Decision-Making Practices

Public and private sector decision making is studied with anexperiment. The study compares decision making in a tax-supportedgeneral purpose governmental agency with that done by a businessfirm selling to a market, using a simulation to capture differencesin the preferences and practices of mid-level managers workingin the two sectors. The simulation calls for participating managersto assess the risk and prospect of adopting budgets tailoredto match each sector. A cognitive culture that stresses analysis,speculation, bargaining, or networking is employed to fashiona budget appropriate for a public and a private sector organization,each with a controversial and a noncontroversial budget amount.The literature on public/private differences was consulted tomake predictions, suggesting that public sector managers wouldfavor bargaining and networking and private sector managerswould favor analysis and speculation. The cognitive style literaturesuggests that managers favor budgets constructed with an approachthat is consistent with their preferred cognitive style andsee less risk in the choice, except in a public setting whererisk would be unaffected. The study finds that private sectormanagers are more apt to support budget decisions made withanalysis and less likely to support them when bargaining isapplied. Public sector managers are less likely to support budgetdecisions backed by analysis and more likely to support thosethat are derived from bargaining with agency people.     

Efficiency in Marriage

Economists usually assume that bargaining in marriage leads to efficient outcomes. The most convincing rationale for this assumption is the belief that efficient allocations are likely to emerge from repeated interactions in stationary environments, and that marriage provides such an environment. This paper argues that when a current decision affects future bargaining power, inefficient outcomes are plausible. If the spouses could make binding commitments–in effect, commitments to refrain from exploiting the future bargaining advantage–then the inefficiency would disappear. But spouses seldom can make binding commitments regarding allocation within marriage.To investigate the efficiency of bargaining within marriage when choices affect future bargaining power, we consider the location decisions of two-earner couples. Initial location decisions are transparent and analytically tractable examples of choices likely to affect future bargaining power, but the logic of our analysis applies to many other decisions. For example, decisions about education, fertility, and labor force participation are also potential sources of inefficiency.     

State Government Funding of Research on Science and Technology: A Report on Michigan

Abstract

The question of this paper is: what factors explain the decisions of state governments to fund research on science and technology? The theoretical problem underlying the research question is patronage in the classical sense, that is, the support by one person or group for the activities of another person or group. Three models of explanation are proposed: “budget incrementalism,” a “rational” model, and a power model. The models are evaluated with information from a case study of a state government program in Michigan. The rational model best explains the state's selection of some proposals out of all the proposals submitted by each state university for funding. The power model best explains the overall allocation of program funds among Michigan's public universities. The budget incrementalism model helps explain the considerable stability from year to year in funding both for the entire program and for each university's share.     

The politics of evaluation research: A case study of community development block grant funding for human services

This paper examines the ramifications of conducting evaluation research within a very politically sensitive area. The evaluation project discussed in this paper involved an assessment of six human service agencies within a city that were receiving Community Development Block Grant (CDBG) public service funds. The city's Office of Policy Planning and Management (OPPM) contracted for this research in order to evaluate the CDBG funded agencies and to provide technical assistance so they could make informed policy decisions concerning the allocation of the Seventh Year Community Development public service funds. The Department of Housing and Urban Development (HUD) had stipulated that there be a 20% limitation in CDBG public service funding. The city involved in this study had allocated over 25% of its CDBG funding to public services. Thus, the city was over the stipulated limitation and was therefore requested by HUD to either justify the expenditure or cut back its allocation of funds to the 20% level.As a result of this mandate by HUD, the city requested and received a technical assistance grant from HUD. This paper provides a specific example of how the conduct of evaluation can become entwined in the politics of human service agencies and their funding sources, Moreover, the implications of this experience for evaluation as a field of endeavor are explored.     

Household size,income and expenditure on food: The case of Cyprus

This paper addresses some of the questions raised in a debate between Deaton and Paxson, 1998, Deaton and Paxson, 2003 and Gan and Vernon (2003) in the Journal of Political Economy. At issue is what, on the basis of theory, the behaviour of households should be in relation to expenditure on food, as household size increases. One argument is that expenditure on food, per capita, should increase as household size increases, but analysis of the data gives very different results. Questions arise as to whether food is a public or private good within households, how food compares to clothing and whether there can be substitution away from food, for example towards clothing.For the purposes of addressing these and related questions in the Cyprus context, a household budget survey was undertaken, in which 625 responses were obtained. The paper describes the survey and uses the results of the survey to run regressions to identify the variables that relate significantly to expenditure on food. What we add to the discussion is the analysis of the determinants of expenditure on food in Cyprus, and the categorisation of this expenditure into food at home, take-away food, food in pubs and cafes, and food in restaurants. Our results tend to support Gan and Vernon (2003); we find, for example, that clothing is more private than food.     

Social norms, partnerships and children

This paper presents a social norms interpretation to explain cross-country differences in partnership formation rates. Social norms are modeled as a constraint on the allocation of household labor that diminishes the gains of entering a partnership, especially for highly educated women with a higher opportunity cost of time. Results using individual level data from 7 waves of the European Community Household Panel (1995?C2001) confirm the predictions from the theory. These results are robust to controlling for country varying factors such as childcare policies and divorce rates, and are mostly driven by marriage (as opposed to cohabitation) decisions. Given that household formation is a necessary prerequisite to having children, our results potentially shed light onto the process of below replacement fertility and the economic challenges associated with it.     

Patterns of income allocation among poor Gecekondu households in Turkey: overt mechanisms and women's secret kitties

This article examines the extent to which patterns of income allocation within the household influence poverty. The study proposes a new conceptual distinction between overt and covert mechanisms. It makes use of established concepts of financial management and control to explain the overt mechanisms, but questions the significance of existing management typologies in understanding poverty. The data draws on interviews conducted separately with both spouses in low-income households carefully selected from a gecekondu settlement in Ankara. Contrary to the dominant view, the research demonstrates a general tendency for both spouses to care for the 'collective good' in their income allocation decisions; thereby minimising further deprivation of the overall household and its individual members. It is also demonstrated that how total income is distributed in practice may be of greater relevance in understanding overall household deprivation than systems of financial management and control. Finally, secret kitties are shown to operate as a covert mechanism whereby women claim enhanced financial agency and indirectly challenge men's authority without causing increased deprivation for the overall household or the children.     

Why Do African Households Give Hospitality to Relatives?

This empirical article describes a widespread African phenomenon—hospitality given to relatives—and explains why African households often provide long-term hospitality. A budget and consumption survey carried out in Gabon in 1994 is used to compare the characteristics of households that provide hospitality and the characteristics of guests and the members of nuclear households. A two-step procedure is proposed to determine whether hospitality decisions are made mainly by heads of household or by the extended family. The data suggest that hospitality decisions are made partly by the extended family.     

Formulating waste management strategies based on waste management practices of households in Santiago de Cuba, Cuba

Rapid urbanisation, population growth and changes in lifestyles in low- and middle-income countries contribute to increasing the per capita domestic waste generation. This trend leads to deplorable environmental and public health conditions, especially in rapidly expanding cities of low- and middle-income countries lacking appropriate waste management systems, Santiago de Cuba is no exception. To improve solid waste management in the city of Santiago de Cuba, the generation of household waste was studied and individual waste treatment approaches were assessed. The principle of a household level analysis was adopted to enable the development of strategies based on the specific conditions of households, their awareness and needs.In February 2004, a survey covering 1180 households was conducted on issues such as monthly consumed goods, waste generated and its treatment. The waste generated by the households was subsequently assessed by means of a measuring campaign. The measured volume not only comprised the collected waste fraction but also the waste materials treated on-site or recovered and recycled by all the different means available.The paper contains the results of the composition and distribution of the waste generated by the households as a function of socio-demographic data. Furthermore, the paper describes the various household treatment strategies dependent on specific waste material types. Several types of household waste can be differentiated by statistical cluster analysis. These household types are characterised not only by the amount of waste generated but also by socio-economic status and waste treatment practices. The results obtained are used to develop a range of waste management strategies, each relating to a household type and characterised by its generated amount, waste material type and spatial urban distribution. Since the strategies are adapted to the requirements and needs of the households, they are more readily accepted by the population concerned. Such socially anchored strategies will contribute to improving the waste situation in the city of Santiago de Cuba and allow an optimised allocation of local resources.     

Money and relationships online: communication and norm formation in women’s discussions of couple resource allocation

Research on intra‐household resource allocation practices has largely ignored the role of communication within but especially beyond the household. This article shows that discussions engaged in outside of the household shed light on intra‐household deliberation and also contribute to an understanding of how norms are formed and used in discussions and negotiations. Using data from the website Mumsnet, and grounding our analysis in a framework that combines the literature on gender norms in allocation practices with insights from the study of online communication, we contribute to the sociological literature on household distribution in three ways: first, we show that women use discussion sites like Mumsnet to clarify and sometimes contest social norms regarding money and relationships; second, we show that users conceive the ability to communicate with partners as a source of ‘relationship power’ and use online discussion with other women to develop that skill; third, we argue that sites like Mumsnet provide fresh insights into household resource allocation processes. The article concludes with a broader discussion of the role of communication in household distribution and the value of online data for understanding such processes.