Question
. In a bargaining model of household decision-making, the couple jointly maximizes the following utility function: U=[U(Cm)- Tm]*[U(Cf)- Tf] Subject to Y= Cm+Cf, where Y
. In a bargaining model of household decision-making, the couple jointly maximizes the following utility function:
U=[U(Cm)- Tm]*[U(Cf)- Tf]
Subject to Y= Cm+Cf, where Y is total family income
Person f is the female partner and m is the male partner
a. In Nancy Qian's paper, which variable in the preceding model changes as a direct consequence of an increase in tea prices in China?
b. What other model variables will be affected following this change?
c. What do Qian's findings regarding girls' survival suggest about the female partner's preferences in this model?
d. How does Qian justify rejecting the unitary model of household decision-making in this paper?
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