English, Article, Journal or magazine article edition: Building the Family Nest: A Collective Household Model with Competing Pre-Marital Investments and Spousal Matching Randall P. Walsh; Murat F. Iyigun

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Bookmark: http://trove.nla.gov.au/version/57194
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Building the Family Nest: A Collective Household Model with Competing Pre-Marital Investments and Spousal Matching
Author
  • Randall P. Walsh
  • Murat F. Iyigun
Physical Description
  • preprint
Notes
  • We develop a model of the household in which spousal incomes are determined by pre-marital investments, the marriage market is charaterized by assortative matching, and endogenously-determined sharing rules form the basis of intra-household allocations. By incorporating pre-marital investments and spousal matching into the collective household model, we are able to (a) establish the welfare implications of the collective model for pre-marital choices and spousal matching and (b) identify the fundamental determinants of endogenously-determined and maritally sustainable intra-marital sharing rules. In particular, we find that all sharing rules along the assortative order support unconditionally efficient outcomes where both pre-marital investments and intra-household allocations are efficient. We also show that, for each couple, the marriage market generates a unique and maritally sustainable sharing rule that is a function of the distribution of pre-marital endowments and the sex ratios in the market.
  • The Collective Model, Marriage, Bargaining, Household Labor Supply
  • RePEc:red:sed004:168
Language
  • English
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