Taxation and the Household

Previous analyses of demand systems and the welfare effects of
taxing male and female labour supplies suppress the analysis of
household resource allocation by assuming a household utility
function. To analyse the implications of assuming this is not the
case, we construct a simple but fairly general model of household
resource allocation and use the properties of the equilibrium of
this model to characterise the effects of tax policy on individual
utilities, as determined by the household resource allocation
process