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Policy implications of the Bargaining Family
1 : Nanzan University
We consider a two-stage family game in which women and men choose education levels in stage 1 and choose the amount of contribution to family public goods in stage 2. If they cannot commit themselves to decisions of the provision of family public goods, the stage-2 decision might be made through bargaining, say, Nash bargaining. That possibility affects the stage-1 decision. These analyses demonstrate that bargaining in stage 2 engenders under-provision of family public goods. To achieve an efficient level of family public goods, government must rely on policies related to education choices rather than those related to contribution decisions.
