Stable Marriage, Children, and Intrahousehold Allocations

We present a revealed preference framework to study sharing of resources in households with children. We explicitly model the impact of the presence of children in the context of stable marriage markets under both potential types of custody arrangement - joint custody and sole custody. Our models deliver testable revealed preference conditions and allow for the identification of intrahousehold allocation of resources. Empirical applications to household data from the Netherlands (joint custody) and Russia (sole custody) show the methods’ potential to identify intrahousehold allocation.