We extend the collective model of household behavior to allow for the existence of public consumption. Under a separability assumption, we show that the observation of the labor supplies and the household demand for the public good allow to identify preferences and the decision process up to some additive constant.
Authors
Richard Blundell
Richard is an CPP Institute Co-director and the Ricardo Professor of Political Economy at University College London.
Costas Meghir
Costas is a Research Fellow of the IFS and a Douglas A. Warner III Professor of Economics at Yale University.
More from IFS
Understand this issue
Policy analysis
Academic research
