Abstract ：
We consider a two-stage family game in which women and men choose education levels in stage 1 and choose the amount of contribution to family public goods in stage 2. If they cannot commit themselves to decisions of the provision of family public goods, the stage-2 decision might be made through bargaining. That possibility affects the stage-1 decision. We show that bargaining in stage 2 engenders over-investment in education and under-provision of family public goods. To achieve an efficient level of family public goods, government must rely on policies related to education choices rather than those related to contribution decisions.

Keywords : Nash bargaining; family public goods; family policy

JEL code: D13; H42; J13; J24