New household models revolutionize understanding of economic decision-making dynamics.
The article explores different ways to understand how households make decisions. It looks at past ideas and suggests that households can be seen as trying to maximize overall happiness. The researchers also highlight the importance of considering factors like wages and other incomes when studying household choices. They argue that a combination of these ideas can help create a more flexible and realistic model of household decision-making. Additionally, the article emphasizes the significance of household production and how overlooking it can affect our understanding of households. Overall, the goal is to provide a better understanding of how households work by looking at the history of research in this area.