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Abstract
There is a burgeoning literature highlighting asymmetric information among household
members. However, little is known about the source of the asymmetry and its effect on
efficiency. Using a unique survey of Ghanaian households, we examine the accuracy of spousal
cross-reports and the effect of discrepancies on farm production. We find that information
problems pertain to scale, the quantity of resources, and scope, the distribution of resources, as
well as allocation decisions on the margin (Engel curves). Moreover, we find that information
asymmetries lead to inefficiency in production, and the effect is equivalent to about 15% of the
variation across households.