The Economics of Living Together

Tip of the hat to MR for the pointer.
The following data come from Switzerland and not from the US. Very interesting read. A bit says:
"How large are the economies of scale of living together? And how do partners share their resources? The first question is usually answered by equivalence scales. Traditional estimation and application of equivalence scales assumes equal sharing of income within the household. This paper uses data on financial satisfaction to simultaneously estimate the sharing rule and the economy of scale parameter in a collective household model. The estimates indicate substantial scale economies of living together, especially for couples who have lived together for some time. On average, wives receive almost 50% of household resources, but there is heterogeneity with respect to the wives’ contribution to household income and the duration of the relationship."

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Interesting fact of the Day

Hat tip to Marginal Revolution for the pointer.

"Highest birth rate in Europe + highest divorce rate + highest percentage of women working outside the home = the best country in the world in which to live...Iceland, the block of sub-Arctic lava to which these statistics apply, tops the latest table of the United Nations Development Programme's (UNDP) Human Development Index rankings, meaning that as a society and as an economy - in terms of wealth, health and education - they are champions of the world."

Go, Iceland.