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Calculating Australia'S Gross Household Product: Measuring The Economic Value Of The Household Economy 1970-2000

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FAYE SOUPOURMAS
DUNCAN IRONMONGER

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Abstract

This paper presents estimates for a thirty year period of Australia’s Gross Household Product (GHP), the economic value added by unpaid labour and the households own capital. In 2000 GHP was estimated to be worth $471 billion. Gross Market Product (GDP minus the imputed value of owner-occupied housing) was worth $604 billion in 2000. The household economy was nearly 80 per cent of the size of the market economy in 2000. More importantly, the GHP is nearly half (44%) of total economic activity (Gross Economic Product). The household economy absorbs more labour time than the market economy. In 2000 Australians spent about 15 per cent more time on non-market activities than market ones. The failure of statistical organisations to provide official estimates of the household economy (GHP) means that almost half of the total valuable economic activities undertaken by Australians are ignored by economists and policy makers.

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File URL: http://www.economics.unimelb.edu.au/SITE/research/workingpapers/wp02/833.pdf
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Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 833.

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Length: 22 pages
Date of creation: 2002
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Handle: RePEc:mlb:wpaper:833

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  1. Iulie Aslaksen & Charlotte Koren, 1996. "Unpaid household work and the distribution of extended income: The Norwegian experience," Feminist Economics, Taylor and Francis Journals, vol. 2(3), pages 65-80, January. [Downloadable!] (restricted)
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