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Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment

Bobonis, Gustavo J.·2009·Journal of Political Economy

Abstract

I study whether households make Pareto‐efficient intrahousehold resource allocation decisions. Combining randomized variation in women’s income generated by the evaluation of the Mexican PROGRESA program with variation attributable to localized rainfall shocks as distribution factors in the collective model, I find evidence favoring Pareto optimality. More specifically, female‐specific income changes have positive effects on children’s goods expenditures, whereas changes due to rainfall shocks have a smaller influence on household public goods expenditures. The evidence is consistent with female partners having greater sensitivity to own‐income changes and norms that oblige women to devote their earnings to meet collective consumption needs.

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Metadata

Authors
Bobonis, G. J.
Venue
Journal of Political Economy
Published
2009-06
Volume
117
Issue
3
Pages
453-503
ISSN
  • 0022-3808 (ISSN-L)
  • 1537-534X
OpenAlex
W1976958742
Cited by
321
References
50
FWCI
23.87
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment. https://app.cochat.ai/papers/10.1086/600076
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Bobonis, G. J. (2009). Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment. Journal of Political Economy. https://doi.org/10.1086/600076

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