The economies of scale of living together and how they are shared – Estimates based on a collective household model

Bütikofer, Aline; Gerfin, Michael (July 2009). The economies of scale of living together and how they are shared – Estimates based on a collective household model (Discussion Papers 09-03). Bern: Department of Economics

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How large are the economies of scale of living together? And how do partners share their resources? The first question is usually answered by equivalence scales. Traditional estimation and application of equivalence scales assumes equal sharing of income within the household. This paper uses data on financial satisfaction to simultaneously estimate the sharing rule and the economy of scale parameter in a collective household model. The estimates indicate substantial scale economies of living together, especially for couples who have lived together for some time. On average, wives receive almost 50% of household resources, but there is heterogeneity with respect to the wives’ contribution to household income and the duration of the relationship.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Bütikofer, Aline and Gerfin, Michael

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

Discussion Papers

Publisher:

Department of Economics

Language:

English

Submitter:

Lars Tschannen

Date Deposited:

07 Oct 2020 15:28

Last Modified:

07 Oct 2020 15:28

JEL Classification:

D12, C21, D19

BORIS DOI:

10.7892/boris.145718

URI:

https://boris.unibe.ch/id/eprint/145718

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