By Christina Jonung, Inga Persson
Financial research of the family members is a contemporary, yet already good confirmed sector in economics. This ebook bears proof to the vigorous and suitable examine within the sector. Essays during this entire assortment supply a transparent photograph of the state-of-the-art of economics of the relatives and discover theoretical and empirical purposes. The individuals extra examine tax, public baby care and parental go away regulations by way of the incentives they bring for labour provide, time allocation, human capital accumulation and the alternative of ways to prepare baby care. This quantity additionally attracts on event from the Nordic international locations, popular for his or her event with kinfolk and gender equality rules.
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Extra info for Economics of the Family and Family Policies
15 At the other extreme, if binding agreements cannot be made in the marriage market, then husbands and wives bargain over the surplus generated by a particular marriage. The marriage market can also generate substantial differences between the short-run and long-run effects of tax, transfer and other redistributive policies. In Lundberg and Pollak (1993), we consider a model in which prospective spouses can agree on a transfer payment from (for example) husbands to wives that is uncontingent on the realized values of income later in the marriage.
Whether motivated by Samuelson’s family consensus story or Becker’s altruist story, the common preference framework is a simple, powerful mechanism for generating demand functions and establishing their comparative statics for use in applied problems. It remains the standard theoretical framework for analyzing consumption behavior and labor supply. Only serious deficiencies could justify replacing this approach with a more complicated alternative. In recent years, however, common preference models have been targets of an intense barrage of theoretical and empirical criticism.
In the marriage market, if there are close substitutes for each individual, then the next best marriage is nearly as good as the proposed one, and the surplus to be divided by bargaining is small. Over time, however, a sizable surplus may develop in an ongoing marriage, perhaps because of investments in marriage-specific human capital. In this situation, the possibility of divorce (perhaps followed by remarriage) defines the scope for bargaining ex post within marriage by placing bounds on the distributions that can emerge as equilibria.
Economics of the Family and Family Policies by Christina Jonung, Inga Persson