We model the interaction between the marriage market and the intra-household allocation of resources in a setting that accounts for both economic gains to marriage (through public consumption) and unobserved non-material match quality, without imposing transferable utility.
We follow an axiomatic approach that leads to the empirically tractable “Additive Quantity Shifting” (AQS) model. Using a revealed preference methodology, we are able to identify individuals’ match qualities and to quantify these in money metric terms. The methodology includes both preference factors, affecting individuals’ preferences over private and public goods, and match quality factors, driving differences in unobserved match quality.
We demonstrate the practical usefulness of our methodology through an application to the Belgian MEqIn data. We find intuitive patterns of match quality that allow us to rationalise both the observed matches and the within-household allocations of time and money.
About the speaker
Laurens Cherchye's research spans the fields of Consumption analysis (including labour supply and time use) and Production analysis (including efficiency measurement). His work has been published in top journals. He will present the paper “Spouses with benefits: on match quality and consumption inside households”.
Registration for bilateral, lunch or dinner
Lunch will be provided. If you would like to meet the guest speaker for a bilateral, join for lunch or dinner, then please register by filling in the registration form.
See also
No event items found.
