Author: Valerie Lechene Date: 25 March 2011 Impact Report
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MICROECONOMETRIC ANALYSIS OF ASPECTS OF INDIVIDUAL BEHAVIOUR
This research programme will develop understanding of aspects of individual behaviour using the tools of micro-econometrics, with the aim of informing policy.
The research will focus on intra-household behaviour, from both theoretical and empirical angles, in order to understand how individuals interact within households to reach the decisions whose consequences we see. This understanding is crucial for the design and evaluation of policies aimed at a specific type of individual within households, eg women, children or the elderly. The effect of such policies, which seek to raise the welfare of specific household members either by redistributing resources inside households or transferring resources to households can be mitigated or even cancelled for instance if household members pool resources or behave inefficiently. Micro-econometric tools allow the documentation of the existence of such effects and measure their extent so as to inform policy.
Questions relating to the link between smoking and health will also be examined. The research will document the existence and extent of selection into smoking, and its consequences for the quantification of the effect of smoking on mortality. Understanding selection into smoking matters greatly for the effectiveness of policies designed to deter smoking, in allowing better targeting of populations at risk.