In a corporate development environment writing mostly administrative software, should every developer use their own database instance, or should they use a central database instance during development? What are the advantages and disadvantages of each approach? What about other environments and other products?
If you all share the same database, you might have some issues if someone make a structure change to the database and that the code is not "Synchronized" with it.
I highly recommend one DB per developer for the only reason that you don't want to do "write" test to see someone else override you right after. A simple exemple? You try to display product for a website. Everything works until all the products disappear. Problem? Another developer decided to play with the "Active" flag of the product to test something else. In cases like that, a transaction might not even work. End of the story, you spend time debugging for someone else action.
I highly recommend replicating the staging database to the developer database once in a while to synchronize the structure (or better, have a tool to rebuild a database from scratch).
Of course, we require scripts for changes to the database and EVERYTHING is in a Source Control.