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Are Time and Money Equally Substitutable for All Commodity Groups in the Household's Domestic Production?

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Abstract

This article uses household data to measure the substitutability between time and money for eight commodity groups and different countries. The elasticities estimated using the household's market wage and an estimated opportunity cost of time are positive, indicating substitutability, and much larger for all goods compared to food. The estimates with the wage rate are, in general, smaller than those obtained using the opportunity cost of time

Suggested Citation

  • Carla Canelas & François Gardes & Philip Merrigan, 2014. "Are Time and Money Equally Substitutable for All Commodity Groups in the Household's Domestic Production?," Documents de travail du Centre d'Economie de la Sorbonne 14071, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:14071
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    22. Aurélien Poissonnier & Delphine Roy, 2017. "Household Satellite Account for France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 353-377, June.
    23. Carla Canelas & François Gardes & Silvia Salazar, 2013. "A Microsimulation on Tax Reforms in LAC Countries: A New Approach Based on Full Expenditures," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00881014, HAL.
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    28. François Gardes, 2014. "Full price elasticities and the value of time: A tribute to the Beckerian model of the allocation of time," Documents de travail du Centre d'Economie de la Sorbonne 14014, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    29. François Gardes, 2014. "Full price elasticities and the value of time: A Tribute to the Beckerian model of the allocation of time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00973418, HAL.
    30. D. J. Torgerson & C. Donaldson & D. M. Reid, 1994. "Private versus social opportunity cost of time: Valuing time in the demand for health care," Health Economics, John Wiley & Sons, Ltd., vol. 3(3), pages 149-155, May.
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    Cited by:

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    2. François Gardes, 2021. "A Method to infer time preference from the value of time," Post-Print halshs-03289200, HAL.
    3. François Gardes, 2018. "On the value of time and human life," Post-Print halshs-01903596, HAL.
    4. François Gardes, 2021. "An Austrian Trade Cycle model with an Endogenous Value of Time," Post-Print halshs-03325379, HAL.
    5. François Gardes, 2021. "On the value of time and human life," Post-Print halshs-03325332, HAL.
    6. François Gardes, 2021. "An Austrian Trade Cycle model with an Endogenous Value of Time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03325379, HAL.
    7. François Gardes, 2019. "The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01478052, HAL.
    8. François Gardes, 2021. "An Austrian Trade Cycle model with an Endogenous Value of Time," Documents de travail du Centre d'Economie de la Sorbonne 21025, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    9. François Gardes, 2018. "On the value of time and human life," Documents de travail du Centre d'Economie de la Sorbonne 18028, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    10. François Gardes, 2021. "On the value of time and human life," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03325332, HAL.
    11. François Gardes, 2019. "The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data," Post-Print hal-01478052, HAL.
    12. François Gardes, 2018. "On the value of time and human life," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01903596, HAL.
    13. Brad R. Humphreys & Jane E. Ruseski & Jie Yang, 2020. "Household consumption decisions: will expanding sports betting impact health?," Review of Economics of the Household, Springer, vol. 18(4), pages 1079-1100, December.
    14. François Gardes, 2019. "The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data," PSE-Ecole d'économie de Paris (Postprint) hal-01478052, HAL.
    15. François Gardes, 2021. "A Method to infer time preference from the value of time," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03289200, HAL.

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    More about this item

    Keywords

    Elasticity of substitution; time use; statistical matching;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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