Abstract
This chapter describes a rich number of cases in which Samuelson distinguishes between the individual and the family as the consuming agent. The idea that the family demand function can be consistent with axioms of revealed preference is rendered difficult to achieve. Part of the problem involves giving a spouse rather than the family or household a utility function. Then the problem arises as to how the individual demand function is aggregated for the family. On the theoretical side, the chapter considers a Bergson-Samuelson type of social welfare utility function, with implications for Arrow's impossibility theorem. On the application side, the chapter features Becker's 'rotten kid' model problem, holding out the possibility of a solution with a family member as a possible dictator.
| Original language | English |
|---|---|
| Title of host publication | Samuelsonian Economics and the Twenty-First Century |
| Publisher | Oxford University Press |
| ISBN (Electronic) | 9780191711480 |
| ISBN (Print) | 0199298831, 9780199298839 |
| DOIs | |
| State | Published - Jan 1 2009 |
Keywords
- Arrow's impossibility theorem
- Bergson-Samuelson social welfare function
- Consensus model
- Revealed preference
- Social indifference curves
- Utility function
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