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Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses

Author

Listed:
  • Fredrik Carlsson
  • Haoran He
  • Peter Martinsson
  • Ping Qin
  • Matthias Sutter
Abstract
Many economic decisions are made jointly within households. This raises the question about spouses' relative influence on joint decisions and the determinants of relative influence. Using a controlled experiment (on inter-temporal choice), we let each spouse first make individual decisions and then make joint decisions with the other spouse. We use a random parameter probit model to measure the relative influence of spouses on joint decisions. In general, husbands have a stronger influence than wives. However, in richer households and when the wife is older than the husband, we find a significantly stronger influence of the wife on joint decisions.

Suggested Citation

  • Fredrik Carlsson & Haoran He & Peter Martinsson & Ping Qin & Matthias Sutter, 2010. "Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses," Working Papers 2010-20, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2010-20
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    References listed on IDEAS

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    More about this item

    Keywords

    household decision making; spouses; relative influence; random parameter model; field experiment; time preferences;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D10 - Microeconomics - - Household Behavior - - - General

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