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The Regional Economic Value of Nonmarket Household Production Time: Combining an I-O Framework with Time Use Date

  • Pratt, James E.
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    Since their inception in 1934, the National Income and Product Accounts of the U.S. (NIPAs) have excluded estimates of household production from total economic activity. Many proposals have been made for including the value of household production in the NIPAs, all of which rest on some form of imputed value to be added to Gross Domestic Prod-uct. This paper uses U.S. data from 2006 to determine economy-wide implicit values for the time spent by household members in unpaid household activities, specifically unpaid child care time. I demonstrate a method that combines household time allocation within an Input-Output (I-O) framework to allow for an implicit rather than an imputed valuation of house-hold time. The values for work and work-related time as well as family care time by industry and by occupation are universally large and do not follow a pattern which might be suggested by wages alone.

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    Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

    Volume (Year): 39 (2009)
    Issue (Month): 1 ()

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    Handle: RePEc:ags:jrapmc:132428
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    1. Lars Brink & Bruce McCarl, 1977. "Input-Output Analysis, Linear Programming And The Output Multiplier," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 25(3), pages 62-67, November.
    2. Hughes, David W., 2003. "Policy Uses of Economic Multiplier and Impact Analysis," Choices, Agricultural and Applied Economics Association, vol. 18(2).
    3. Ironmonger, D., 2000. "Household Production and the Household Economy," Department of Economics - Working Papers Series 759, The University of Melbourne.
    4. Mildred Warner, 2009. "(Not) Valuing Care: A Review of Recent Popular Economic Reports on Preschool in the US," Feminist Economics, Taylor & Francis Journals, vol. 15(2), pages 73-95.
    5. Reich, Utz-Peter, 1991. "Concept and Definition of Income in the National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 235-47, September.
    6. Carson, Carol S, 1975. "The History of the United States National Income and Product Accounts: The Development of an Analytical Tool," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 21(2), pages 153-81, June.
    7. J. Steven Landefeld & Shaunda Villones, 2009. "National Time Accounting and National Economic Accounting," NBER Chapters, in: Measuring the Subjective Well-Being of Nations: National Accounts of Time Use and Well-Being, pages 113-123 National Bureau of Economic Research, Inc.
    8. Nancy Folbre & Jayoung Yoon & Kade Finnoff & Allison Sidle Fuligni, 2004. "By What Measure? Family Time Devoted to Children in the U.S," UMASS Amherst Economics Working Papers 2004-06, University of Massachusetts Amherst, Department of Economics.
    9. Landefeld, J Steven & McCulla, Stephanie H, 2000. "Accounting for Nonmarket Household Production within a National Accounts Framework," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 289-307, September.
    10. J. Steven Landefeld & Barbara M. Fraumeni & Cindy M. Vojtech, 2005. "Accounting for Nonmarket Production: A Prototype Satellite Account Using the American Time Use Survey," BEA Papers 0056, Bureau of Economic Analysis.
    11. Nancy Folbre & Jayoung Yoon & Kade Finnoff & Allison Fuligni, 2005. "By what measure? family time devoted to children in the united states," Demography, Springer, vol. 42(2), pages 373-390, May.
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