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Substitution between Goods and Leisure in a Developing Country

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  • Harold Alderman
  • David E. Sahn

Abstract

The paper explores the substitutability between goods, female leisure, and male leisure. We find that goods and leisure are not separable. We then adapt the Almost Ideal Demand System (AIDS) to include leisure in the system in the same manner as commodities. The model is not sensitive to variations in the assumption of total time available for each individual's work and leisure. Results from Sri Lanka indicate the marginal propensity to consume leisure is quite high, especially in rural areas. This finding has important implications for transfer programs designed to raise food consumption. A somewhat surprising complementarity between male and female leisure was also observed. A number of goods were found to be complements to both male and female leisure.

Suggested Citation

  • Harold Alderman & David E. Sahn, 1993. "Substitution between Goods and Leisure in a Developing Country," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 875-883.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:4:p:875-883.
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    File URL: http://hdl.handle.net/10.2307/1243975
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    Cited by:

    1. West, Sarah E. & Williams, R.C.Roberton III, 2004. "Estimates from a consumer demand system: implications for the incidence of environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 535-558, May.
    2. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2021. "Economy-wide effects of cross-border labor mobility: The case of Palestinian employment in Israel," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 964-981.
    3. Aziz, Babar & Malik, Shahnawaz, 2006. "Surmising Consumer Demand System & Structural Changes Using Time Series Data," MPRA Paper 22911, University Library of Munich, Germany, revised 2006.
    4. Fabiosa, Jacinto F. & Jensen, Helen H. & Yan, Dong, 2005. "Household Welfare Cost of the Indonesian Macroeconomic Crisis," 2005 Annual meeting, July 24-27, Providence, RI 19311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Xiang, Di & Zhan, Lue & Bordignon, Massimo, 2020. "A reconsideration of the sugar sweetened beverage tax in a household production model," Food Policy, Elsevier, vol. 95(C).
    6. Abrigo, Michael R.M., 2016. "Who Weans with Commodity Price Shocks? Rice Prices and Breastfeeding in the Philippines," Research Paper Series DP 2016-28, Philippine Institute for Development Studies.
    7. Abrigo, Michael Ralph M., 2016. "Who Weans with Commodity Price Shocks? Rice Prices and Breastfeeding in the Philippines," Discussion Papers DP 2016-28, Philippine Institute for Development Studies.
    8. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2018. "Labour leisure trade-off meets a mobility function to model cross-border movements of labour between Palestine and Israel," Conference papers 333017, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Matshe, Innocent & Young, Trevor, 2004. "Off-farm labour allocation decisions in small-scale rural households in Zimbabwe," Agricultural Economics, Blackwell, vol. 30(3), pages 175-186, May.
    10. Gronau, Reuben, 1997. "The Theory of Home Production: The Past Ten Years," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 197-205, April.

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