
doi: 10.2139/ssrn.1679795
handle: 10419/49420 , 10419/43117
Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer construct with microfoundations. One complex aspect of micro-level heterogeneity is household size, as individuals living in multi-member households have the potential to share goods within the household, benefiting from household-size economies. Theoretically, we show that validating the role of a representative consumer would require that the way individuals benefit from intra-household sharing is strictly aligned across the rich and the poor: once expenditures for subsistence needs are subtracted from disposable household income, household-size economies the remainder (discretionary) household incomes entail must be the same across the rich and the poor. We have designed a survey method that allows the testing of this stringent property of intra-household sharing and find that it holds.
Survey Method, SurveyMethod, Quantitative methods in economics & management, Equivalent Expenditures, Méthodes quantitatives en économie & gestion, Haushaltsökonomik, Economie générale & histoire de la pensée économique, D91, D12, Konsumtheorie, Gesamtwirtschaftlicher Konsum, I32, Sciences économiques & de gestion, D31, D11, Business & economic sciences, ddc:330, Linear Aggregation, Equivalent Expenditures, Survey Method, Household-Size Economies, Equivalent, Befragung, Linear Aggregation, xpenditures, Linear Aggregation, Dynamic Representative Consumer, Household-Size Economies, Equivalent Income, Survey Method, Verbraucherausgaben, Linear Aggregation; Equivalent Expenditures; Survey Method; Household-Size Economies;, General economics & history of economic thought, E01, C42, Household-Size Economies, Theorie, E21, jel: jel:C42, jel: jel:E21, jel: jel:E01, jel: jel:E1, jel: jel:D91, jel: jel:D11, jel: jel:D12, jel: jel:D31, jel: jel:I32
Survey Method, SurveyMethod, Quantitative methods in economics & management, Equivalent Expenditures, Méthodes quantitatives en économie & gestion, Haushaltsökonomik, Economie générale & histoire de la pensée économique, D91, D12, Konsumtheorie, Gesamtwirtschaftlicher Konsum, I32, Sciences économiques & de gestion, D31, D11, Business & economic sciences, ddc:330, Linear Aggregation, Equivalent Expenditures, Survey Method, Household-Size Economies, Equivalent, Befragung, Linear Aggregation, xpenditures, Linear Aggregation, Dynamic Representative Consumer, Household-Size Economies, Equivalent Income, Survey Method, Verbraucherausgaben, Linear Aggregation; Equivalent Expenditures; Survey Method; Household-Size Economies;, General economics & history of economic thought, E01, C42, Household-Size Economies, Theorie, E21, jel: jel:C42, jel: jel:E21, jel: jel:E01, jel: jel:E1, jel: jel:D91, jel: jel:D11, jel: jel:D12, jel: jel:D31, jel: jel:I32
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