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United Nations sales no. E.90.III.A.2
An unanticipated spike in food prices can increase malnutrition among the poor with lasting consequences, but parents can protect the most vulnerable within the family by distributing scarce food to minimize adverse impacts. To find evidence of this strategy, we use anthropometric and consumption data from Indonesia, collected before and after the 2007/08 food price crisis. Our results indicate that soaring food prices had a significant and uneven impact on growth among children. Using household fixed effects, we find that the negative impact was significantly larger among larger children, as measured by the initial height z-score. We find that children with low height z-scores at the start of the crisis gained ground relative to their peers during the crisis, consistent with food-resource allocations in their favor. The findings remain robust when controlling for possible differential impacts by gender, family size and food producer status. We conclude that the food price crises had negative long-term impacts on children, and that parental behavior protected the most vulnerable. For Indonesian policy makers, our results indicate that safeguarding family food security should be a priority when targeting specific groups of children is difficult.
Underscoring the importance of the threat of divorce on risk-sharing within the household, in the second part we focus on the interaction of divorce and risk sharing in the household. We examine how allowing for endogenous marriage dissolution weakens the function of marriage in the provision of insurance against labor market shocks. We present a model of marriage dissolution and risk sharing in the face of wage shocks. We provide an algorithm to solve the model and obtain the reduced form policy functions of the structural model. Next, using the nonlinear measurement error literature, we show the identification of the reduced form policy functions and specify the required assumption to obtain the identification. We illustrate how our Japanese panel data provide us with the necessary observable variables for the identification.
The aim of this paper is to explain why time use data are essential for analysing issues of gender equity and the intra-household allocation of resourcess, for comparing living standards and for estimating the behavioural effects of changes in policy variables.