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Rational Household Labor Supply

Chiappori, Pierre-Andre·1988·Econometrica

Abstract

In this paper, household is modeled as a two-member collectivity taking Pareto-efficient decisions. The consequences of this assumption are analyze d in a three-good model, in which only total consumption and each mem ber's labor supply are observable. If the agents are assumed egoistic (i.e., they are only concerned with their own leisure and consumptio n), it is possible to derive falsifiable conditions upon household la bor supplies from both a parametric and a nonparametric viewpoint. If , alternatively, agents are altruistic, restrictions obtain in the no nparametric context; useful interpretation stems from the comparison with the characterization of aggregate demand for a private-good econ omy. Copyright 1988 by The Econometric Society.

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Authors
Chiappori, P.-A.
Venue
Econometrica
Publisher
JSTOR
Published
1988-01
Volume
56
Issue
1
Pages
63
ISSN
0012-9682 (ISSN-L)
OpenAlex
W2020616773
Cited by
1,626
References
0
FWCI
7.07
Type
journal article
Language
en
Open access
closed

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