Efficient allocation of resources within extended-family households: Evidence from developing countries

Type Working Paper
Title Efficient allocation of resources within extended-family households: Evidence from developing countries
Author(s)
Publication (Day/Month/Year) 2004
URL http://www.researchgate.net/profile/Arnold_Harberger/publication/228876613_Efficient_allocation_of_r​esources_within_extended-family_households_Evidence_from_developing_countries/links/546e187c0cf2b5fc​17603e74.pdf
Abstract
Households are rather complicated structures in developing countries, where it is not uncommon to nd many adults living under the same roof and sharing the cooking pot. Most of the empirical investigation of models that highlight individualistic behavior within the household has been conned, however, to the characterization of decisionmaking by couples. This paper lls this gap and examines the hypothesis of efficiency in the allocation of resources within extended-family farm households. The evidence presented indicates that, although individualistic behavior and preference heterogeneity are pertinent, they do not preclude the exhaustion of mutually advantageous trades on the allocation of family resources (i.e., cooperation).

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