Allocation Of Income Research Articles

Breaking the Myth of Harmony: Theoretical and Methodological Guidelines to the Study of Rural Third World Households

Conventional neoclassical models of the household fail to account for the conflict and negotiation inherent in these fundamental economic units. The recent incorporation of game-theoretic notions of "bargained" decision-making into these models neglects gender as a defining feature of household economics. This paper develops an alternative feminist model of the household in which gender-based differentials in the access to key economic and noneconomic resources condition the formation of household economic goals, the allocation of labor and income to competing uses, and the welfare outcomes of household economic activities for all household members.

Education and the economy

Ever since the Second World War, and particularly since the 1960s, thinking about educational policy and practice has been heavily influenced, if not dominated, by ideas about the role of education in the economy. Issues of economic growth, better job opportunities, international competitiveness, education/labour market mismatch, or even fairness in the allocation of jobs, income and other social rewards, all depend critically on how we conceive of relationships between education and the economy. Moreover, if we take a broad view of what is meant by the term 'economy', including in it all organizations

Money in Marriage: How Patterns of Allocation Both Reflect and Conceal Power

This paper examines perceptions of money within marriage, focusing upon the concepts of control and ownership. It considers the criteria involved in Pahl's (1983; 1989) typology for the allocation of income, and their ability to capture the dynamic perceptual elements associated with change. These issues were explored by means of data from semi-structured interviews, using mainly middle-class couples (thirteen women and nine of their partners) in the 30–50 year age-range. Most of the women were in the process of returning to the labour market following an absence of at least eight years. The findings demonstrate, on the one hand, that Pahl's revised typology (1989), which includes an emphasis on the person possessing overall control, can be used to trace major shifts in the balance of economic power as a function of the life-cycle and associated changes in the source of income. On the other hand, the findings also show that a couple's report of their financial arrangements, concerning the ‘pooling’ of income, can yield the erroneous impression that resources are equally shared. In particular, the ‘rights’ of ownership associated with having earned the income may remain hidden, and lead to patterns of overall control with potential consequences for a non-earning, dependent partner.

Family Composition, Parental Time, and Market Goods: Life Cycle Trade‐Offs

The present study supplements Canadian consumer expenditure survey data with unique time use data to analyze family life cycle decisions regarding allocation of full income to market purchased consumption goods, home production, and leisure time. Results confirm that young children's presence causes families to increase their shares of full income allocated to home production and to decrease the shares of full income allocated to leisure. As a share of full income, expenditures for market goods steadily increase while expenditures for women's home production diminish as children age.

Equilibrated states and optimal allocations of resources under rigid prices

We formulate the problem of finding a Pareto point which should satisfy some additional equalities. An existence theorem is proved, and two examples of its application are demonstrated. Firstly, it is shown that an efficient equilibrium state exists in economies with some fixed and some flexible prices if rationing schemes are consistent with free markets. Secondly, it is proved that there exists an efficient economic growth path with given growth rates of consumption and with given proportions of income allocations among consumers if all the values are calculated at fixed prices.

Allocation of Income within the Household.Edward P. Lazear , Robert T. Michael

Previous articleNext article No AccessBook ReviewsAllocation of Income within the Household. Edward P. Lazear , Robert T. Michael Denise D. BielbyDenise D. Bielby Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by American Journal of Sociology Volume 95, Number 3Nov., 1989 Article DOIhttps://doi.org/10.1086/229354 Views: 2Total views on this site Copyright 1989 The University of ChicagoPDF download Crossref reports no articles citing this article.

Allocation of Income Within the Household.

Allocation of Income within the Household develops an important new economic model of income distribution within the family, one that attempts to determine which family characteristics affect spending patterns. Professors Lazear and Michael base their work on an analysis of the 1972-73 Consumer Expenditure Survey and test their conclusions against the 1960-61 survey to verify the persistence of the effects discovered. They find, for example, that the average household spends $38 per child for every $100 spent per adult and that the level of relative and absolute expenditure on the child rises with the level of education of the head of the household. Lazear and Michael also explore the implications their study may hold for the process of determining child support payments in households that dissolve. They argue that, unless the spending of every dollar can be monitored, alimony cannot be disentangled from child support. They also develop several criteria by which income might be distributed among family members, and, using one of those criteria, they present a series of tables that suggest the appropriate payment from one parent to another given family size, structure, and income level. Their model is particularly useful because it takes account of the ways other family members who were not part of the original household may contribute income to the new household. Other issues considered include the appropriate way to deal with children with special needs and the timing of transfer payments.

Allocation of Income within the Household

Allocation of Income within the Household

Allocation of income within the household

Allocation of Income within the Household develops an important new economic model of income distribution within the family, one that attempts to determine which family characteristics affect spending patterns. Professors Lazear and Michael base their work on an analysis of the 1972-73 Consumer Expenditure Survey and test their conclusions against the 1960-61 survey to verify the persistence of the effects discovered. They find, for example, that the average household spends $38 per child for every $100 spent per adult and that the level of relative and absolute expenditure on the child rises with the level of education of the head of the household. Lazear and Michael also explore the implications their study may hold for the process of determining child support payments in households that dissolve. They argue that, unless the spending of every dollar can be monitored, alimony cannot be disentangled from child support. They also develop several criteria by which income might be distributed among family members, and, using one of those criteria, they present a series of tables that suggest the appropriate payment from one parent to another given family size, structure, and income level. Their model is particularly useful because it takes account of the ways other family members who were not part of the original household may contribute income to the new household. Other issues considered include the appropriate way to deal with children with special needs and the timing of transfer payments.

A Home Divided: Women and Income in the Third World.

Introduction Judith Bruce and Daisy Dwyer 1. The material consequences of reproductive failure in rural South Asia Mead Cain 2. Intergenerational contracts: familial roots of sexual stratification in Taiwan Susan Greenhalgh 3. Women are good with money: earning and managing in an Indonesian city Hanna Papanek and Laurel Schwede 4. Women's work and poverty: women's contribution to household maintenance in South India Joan P. Mencher 5. Household budgeting and financial management in a lower-income Cairo neighborhood Homa Hoodfar 6. The nonpooling household: a challenge to theory Eleanor R. Fapohunda 7. Dynamic approaches to domestic budgeting: cases and methods from Africa Jane Guyer 8. Income allocation and marriage options in Urban Zambia Monica Munachonga 9. The constraints on and release of female labor power: Dominican migration to the United States Patricia R. Pessar 10. The impact of Agrarian reform on men's and women's incomes in rural Honduras Constantina Safilios-Rothschild 11. Renegotiating the marital contract: intrahousehold patterns of money allocation and women's subordination among domestic out workers in Mexico city Martha Roldan 12. The black four of hearts: toward a new paradigm of household economics Nancy Folbre.

Social Benefits in Advanced Capitalist Countries: A Cross-National Assessment

One of the most striking characteristics of the state in the advanced capitalist democracies is the role it plays in the allocation of disposable income. Government policy has, of course, always influenced income distribution through regulation and the provision of public goods, but redistribution is a by-product of such activity, which seeks primarily to accomplish other ends. In contrast, a distinguishing feature of the modem welfare state is its deliberate effort to ameliorate the distribution of income generated by the market. Contemporary states perform this function in two ways, through tax policy and income transfer programs. These are clearly linked, and a comprehensive study of the redistributive consequences of the welfare state would require an examination of their combined impact. Yet income transfers are important in their own right.' They have, indeed, been among the fastest growing components of government activity and, unsurprisingly in an era of economic constraints, among the most controversial. The sharp differences characteristic of contemporary assessments of income transfer policy follow from divergent interpretations of the causes of inequality and of the government's role in addressing it. Supporters of an active welfare state favor more ambitious public redistributive efforts because they regard poverty and insecurity as structural problems inherent in the operation of the market, and they maintain that a measure of social security should be treated almost as a right of citizenship. Moreover, they contend that an active welfare state need not be achieved at the expense of economic growth; indeed, they see income security and distributive equity as important preconditions of a productive work force. Critics of public welfare programs, on the other hand, are suspicious of wide-ranging government transfers because they view most forms of poverty as reflecting a lack of individual effort, and they argue that welfare programs only exacerbate the problem by creating disincentives for individuals to work and save. They reserve their sharpest criticism for programs aimed at the working-aged poor: these efforts, in their view, foster a dependence on government that erodes the self-reliance necessary for a permanent escape from poverty. But even such programs as pensions and health benefits are subject to criticism, if only because they are seen as diverting resources from a productive private sector to an inherently unproductive public sector.2

The Allocation of Money in Cross-Class Families

This paper examines the patterns of income allocation in cross-class families; that is, in families in which the wife is employed in higher level white-collar or professional employment, and the husband in manual work. Following the work of Jan Pahl (1982 and 1983) families are categorised according to their system of money management. The majority of families here employ either a ‘one purse’ system based upon joint family funds, or an independent system based upon separate bank accounts. In addition, couples who use an ‘allowance’ system, a shared system, or a variant of the independent system with only one-earner are discussed. Whenever possible, qualitative reports from the families interviewed are drawn upon. The paper reveals ways in which gender-specific behaviour may be observed through the study of families' allocative systems. In particular, the wives' propensity to assume responsibility for food shopping, regardless of the couples' sources of income or allocative pattern chosen, is demonstrated. In addition, however, the source of income – specifically cash payments to the husbands – is seen to have an independent effect upon the couples' perceptions of money within the family. The paper concludes with speculation as to why the majority of these affluent families employ a system of joint family funds.

Growth and Allocation of Tensions in an Open Socialist Economy

Abstract Persistent contradictions among growth, efficiency and equilibrium in East European countries are analyzed in our theoretical model. Internal and external tensions are distinguished. Both tensions diminish the efficiency of investment and of foreign trade, moreover, they modify macro distributional shares. Competing growth strategies are compared which differ in the allocation of the national income between internal and external utilization, on the one hand; and between investment and consumption, on the other hand. A simple macro model for Hungary is constructed to be used in computer simulations.

The Impact of Taxes in Developed Capitalist Countries

A research question of perennial interest is, “What are the exogenous variables which best account for the differential distribution of income across nations?” Better understanding of the causes of inequalities in income distribution has been sought by investigating the effects of tax policies on income allocation and growth in capitalist countries. The quantitative analyses of these matters have engendered some debate about the adequacy of data, and the sufficiency of measurement. A preliminary foray into this research vineyard by Claudio Katz, Vincent Mahler, and Michael Franz is criticized here by Ronald King and Steven Jackson. In turn, Katz, Mahler, and Franz respond.

Families' use of the 1982 tax cut income

The likely allocation of extra income from the 1982 U.S. income lax rate reduction by a group of consumers was investigated. Eighty‐five percent of the sample indicated they were likely to spend the additional income and 75% that they would save or invest it. Saving was related to income and age. Those indicating they were likely to save said they would require a larger sum of money as a result of the tax cut in order to make a decision about its use than did those who were most likely to spend it.

Concepts of extended preference

This paper remedies ambiguity in the discussion of interdependent preferences by developing a consistent set of distinctions, which span the full range of sympathetic and antipathetic interaction, for the two-person case without reactive behavior. It defines concepts such as benevolence, generosity, altruism, destructiveness, and willingness to begrrudge transfers to others and indicates how their use can clarify the discussion of economic behavior. The definitions take account of preferences (indicated by rates of substitution) and prices (indicated by rates of exchange) at critical income allocations.

SIMULTANEOUS DETERMINATION OF CHURCH CONTRIBUTIONS AND CHURCH ATTENDANCE

In a standard model of household allocation of time and income, church attendance and church contributions are determined simultaneously. There are life‐cycle aspects to both attendance and contributions, as Azzi and Ehrenberg (1975) and Ehrenberg (1977) have argued, and contributions behavior is affected by tax treatment and by a potential free‐rider problem as well. This paper motivates an econometric specification which recognizes these features and estimates the parameters with a data set of over 2000 Protestant church members.

COLLEGE FOOTBALL TELECASTS: WHERE ARE THEY GOING?

Observed Nielsen ratings for college football games show a decreasing trend in the number of viewers in recent years. As the market for these telecasts becomes more competitive, both buyers and sellers should adjust rights fees for quality differences. A model of full income allocation is proposed to isolate pure quality changes from true changes. Using a sample of weekly national collegiate telecasts the optimum optimorum is determined from the set of generalized Box‐Cox forms. Regional data provide an application of the model. Quality and hedonic indexes show not only a deterioration in quality over time but also a downward trend in demand for quality‐adjusted units. Implications for alternative television policies are discussed.

Considering the effects of financial incentives and professional ethics on ‘appropriate’ medical care

This manuscript presents a model of an ‘ethical’ physician's allocation of time and income between work and leisure activities for various remuneration types and income levels. The physician is ‘ethical’ because, ceteris paribus, he prefers to provide that amount of medical care which he believes to be in the patient's best interests. Remuneration systems include fixed, time-based and output-based incomes. Only output-based income provides the physician with incentives which may (if the physician density and medical care price are sufficiently high) generate more-than-‘appropriate’ care per patient. Fixed and time-based incomes necessarily lead the physician to provide less-than-‘appropriate’ care.

Advertising expenditure and aggregate consumption in Britain and West Germany: An analysis of causality

AbstractThis paper surveys past work which attempts to investigate the effects of advertising on the macro‐economy, in particular on the allocation of income to consumption expenditure. It is argued that many prior studies aimed at testing this ‘Galbraithian’ hypothesis have suffered from an inability to detect the direction of any causal flows and may have only detected spurious relationships. Here, the relationship is analysed for West Germany and Great Britain, with the use of bivariate time series modelling techniques considered initially by Granger and Newbold. The advantages and disadvantages of using the concept of ‘Granger Causation’ are considered in relation to testing this area of interest. No support is found for the proposition that advertising has a positive causal effect on aggregate consumption in the two countries.