COMPUTATION OF NASH-BARGAINED MODELS OF HOUSEHOLD LABOUR SUPPLY*

This paper explores a method of recovering the structural parameters of a Nash-bargained model of household labour supply. It proceeds by computing the desired hours of labour supply numerically rather than analytically, thus circumventing the need for analytical tractability. This numerical procedure is then embedded in a conventional maximum-likelihood estimation to obtain estimates of the structural preference parameters. An example using Family Expenditure Survey data is reported.