Household

From Freepedia

The household is the basic unit of analysis in many microeconomic and government models. As the name suggests, the term refers to all individuals who live in the same house.

Most economic models do not address whether or not the members of a household are a family in the traditional sense. Government and policy discussions often treat the terms household and family as synonymous, especially in western societies where the nuclear family has become the most common family structure. In reality, there is not always a one-to-one relationship between households and families.

For UK statistical purposes, a household is defined as "one person or a group of people who have the accommodation as their only or main residence and (for a group) either share at least one meal a day or share the living accommodation, that is, a living room or sitting room" (see National Statisticsarticle). The US census definition similarly turns on "separate living quarters", i.e. "those in which the occupants live and eat separately from any other persons in the building" (US Census Bureau).

Most economic theories assume there is only one income stream to a household; this a useful simplification for modeling, but does not necessarily reflect realtiy. Some households now include multiple income-earning members.

In feudal or aristocratic societies, a household may include servants or retainers. (whether or not they are explicitly so named). Their roles may blur the line between a family member and an employee. In such cases, they ultimately derive their income from the household's principal income.