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A model of sleep, leisure and work over the business cycle

Author

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  • Cardon, James H.
  • Eide, Eric R.
  • Phillips, Kerk L.
  • Showalter, Mark H.

Abstract

This paper uses a single-sector dynamic stochastic general equilibrium (DSGE) model to analyze time use patterns over the business cycle. Using data from the American Time Use Survey, we solve and simulate a model of a utility maximizing consumer subject to a penalty function based on a biological model for sleep. We find that sleep is countercyclical with the business cycle: sleep increases as economic activity declines. We also show that our model provides a reasonable estimate of observed sleep behavior over the period from 2003 through 2016. Our results suggest that separating sleep from other non-work activities is a useful and productive exercise for these types of models.

Suggested Citation

  • Cardon, James H. & Eide, Eric R. & Phillips, Kerk L. & Showalter, Mark H., 2018. "A model of sleep, leisure and work over the business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 95(C), pages 19-36.
    • Handle: RePEc:eee:dyncon:v:95:y:2018:i:c:p:19-36
    DOI: 10.1016/j.jedc.2018.08.003
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    References listed on IDEAS

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    2. Spencer A. Nielson & Jordan Taylor & Zach Simmons & Andrea N. Decker & Daniel B. Kay & Matthew R. Cribbet, 2021. "Sleep Valuation Is Associated with Components of Sleep Health and Daytime Functioning in a College Sample: A Survey Study," IJERPH, MDPI, vol. 18(11), pages 1-14, May.

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    More about this item

    Keywords

    Sleep; Opportunity cost; Business cycle; Dynamic stochastic general equilibrium;
    All these keywords.

    JEL classification:

    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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