Consider a group consisting of members facing a common budget constraint =1: any demand vector belonging to the budget set can be (privately or publicly) consumed by the members. Although the intragroup decision process is not known, it is assumed to generate Pareto‐efficient outcomes; neither individual consumptions nor intragroup transfers are observable. The paper analyzes when, to what extent, and under which conditions it is possible to recover the underlying structure—individual preferences and the decision process—from the group's aggregate behavior. We show that the general version of the model is not identified. However, a simple exclusion assumption (whereby each member does not consume at least one good) is sufficient to guarantee generic identifiability of the welfare‐relevant structural concepts.
MLA
Chiappori, P.‐A., and I. Ekeland. “The Microeconomics of Efficient Group Behavior: Identification.” Econometrica, vol. 77, .no 3, Econometric Society, 2009, pp. 763-799, https://doi.org/10.3982/ECTA5929
Chicago
Chiappori, P.‐A., and I. Ekeland. “The Microeconomics of Efficient Group Behavior: Identification.” Econometrica, 77, .no 3, (Econometric Society: 2009), 763-799. https://doi.org/10.3982/ECTA5929
APA
Chiappori, P., & Ekeland, I. (2009). The Microeconomics of Efficient Group Behavior: Identification. Econometrica, 77(3), 763-799. https://doi.org/10.3982/ECTA5929
The Executive Committee of the Econometric Society has approved an increase in the submission fees for papers in Econometrica. Starting January 1, 2025, the fee for new submissions to Econometrica will be US$125 for regular members and US$50 for student members.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.