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date: 12 December 2019

Abstract and Keywords

Inequality measures typically consider inequality between households, whereas one should ultimately be interested in inequality between individuals. We review some conceptual issues raised by the evaluation of intra-household inequality, in particular in the presence of public consumptions. We then describe recent theoretical and empirical advances in modelling household behavior, which are based on the collective model of household behavior. Lastly, we discuss normative issues involved, in particular when the weighting of individual welfare that is implicit in the household’s decision process is not socially optimal.

Keywords: inequality, intra-household, welfare, collective model, public goods, money-metric welfare indices

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