Estimating the Endogenously Determined Intrahousehold Balance of Power and its Impact on Expenditure Pattern: Evidence from Nepal

17 Pages Posted: 20 Apr 2016

See all articles by Ranjan Ray

Ranjan Ray

Monash University - Department of Economics

Gayatri B. Koolwal

World Bank

Date Written: March 2002

Abstract

The collective approach to household behavior relaxes the restrictive features of the unitary model by specifying household welfare as a weighted combination of the individuals' utilities. But the weights are assumed fixed or exogenous to the analysis. Koolwal and Ray extend the collective approach by proposing and estimating a framework where the weights are determined and simultaneously estimated with the household outcomes. The authors present Nepalese evidence that suggests that a woman's share of household earnings understates her "power" in making household decisions. An increase in the woman's educational experience leads to a rise in her bargaining power. The results also reveal some interesting nonmonotonic relationships between a woman's "power" and the household's expenditure outcomes.

This paper - a product of the Office of the Senior Vice President, Development Economics - is part of a larger effort in the Bank to understand how gender affects development outcomes and to identify the causes of poverty.

Keywords: Unitary Model, Collective Approach, Female Power

JEL Classification: C300, D100, D120, D190

Suggested Citation

Ray, Ranjan and Koolwal, Gayatri B., Estimating the Endogenously Determined Intrahousehold Balance of Power and its Impact on Expenditure Pattern: Evidence from Nepal (March 2002). Available at SSRN: https://ssrn.com/abstract=636097

Ranjan Ray

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia

Gayatri B. Koolwal (Contact Author)

World Bank ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
100
Abstract Views
1,359
rank
325,869
PlumX Metrics