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Bibliothèque 'Individual' versus 'Household' in Recreational Demand Models

'Individual' versus 'Household' in Recreational Demand Models

'Individual' versus 'Household' in Recreational Demand Models

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Date of publication
Mai 2007
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ISBN / Resource ID

This study proposes a novel approach to estimating a recreationaldemand model that accounts for intra-household resource allocation. Thetechnique is based on an analogy borrowed from the literature of collectivehousehold behavior and, in particular, on Browning, Chiappori and Lewbel(2006)’s model. We formulate a collective recreational demand model that takesinto account the role of each member’s preferences for consumption choices andthat depends on how disposable income is divided within the household. Thismodel identifies the Consumer Surplus for each household member and theallocation of resources within a household by a consumption technologyfunction, which summarizes all of the technological economies of scale andscope that result from living together, and by using information about theconsumption of individuals living alone as if they were living in a household.Finally, we show that husbands and wives have significantly differentrecreational demands. This implies that observations for husbands and wivesmay not be treated as identical as in the traditional recreational demand model(unless one spouse is the dictator) and that the collective setting is a plausiblenext step to take in the analysis of recreational demand models.

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Author(s), editor(s), contributor(s)

Veronesi, Marcella

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