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  • Seminar,

Roberta Ziparo (AMSE)

Published on May 17, 2023 Updated on May 23, 2023
Date
Le 23 May 2023 De 12:15 à 13:30
Location
Pôle Tertiaire - Site La Rotonde - 26 avenue Léon Blum - 63000 Clermont-Ferrand
Room 212

Research Seminar


Roberta Ziparo
AMSE
 

Investment and Reputation within the household

Abstract

This paper studies the dynamic relationship between intra-household specialization, resource allocation and women's investment decisions. We consider household investments delegated to the wife in settings where wives that are perceived to be savvy investors by their husbands are entrusted with a larger share of the budget. We show, first theoretically, then empirically in a series of experiments with couples in Malawi, that a signaling game can result, in which wives, in order to maintain control over a larger share of the budget, (a) under-invest in novel goods with unknown returns; and (b) knowingly over-use low-return goods in order to hide bad purchase decisions, we call this the intra-household sunk cost effect.