DFG Funds Research Group on "Macroeconomic Implications of Intra-Household Decisions"

With Alexander Ludwig as spokesperson, one of the three new DFG research groups explores how intra-household decisions interact with macroeconomic key factors


The distribution of income, consumption and wealth in an economy is based on decisions made in individual households. The objective of the Research Unit “Macroeconomic Implications of Intra-Household Decision Making” (spokesperson Alexander Ludwig, Goethe-University) is to take greater account than has been the case to date of the different consumption, employment and investment opportunities of individual household members. In this context, the researchers are going to investigate how intra-household decisions interact with the key production factors – labour, capital and factor productivity – and their distribution. In addition, the consideration of intra-household decisions seeks to advance the analysis of the costs and benefits of economic policy reforms. The project is one of three new Research Units the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) is establishing.with a total funding of approximately €10.4 million. The new networks will be funded for a maximum of two four-year periods.