Household Economics

Household economics analyses all decisions made by households at both the micro-economic and macroeconomic level. One influential analytical tradition emphasizes the role of household production and was inspired by micro-economic analyses of firms and is here labelled ‘Modern Household Economics’. It includes unitary models conceiving of the household as a unified decision-making unit as well as models recognizing that individual members of multi-person households keep their own preferences and constraints. Applications include all decisions possibly made by households.