Household Production, Leisure, and Living Standards
In: Measuring Economic Sustainability and Progress
Household production is an important non-market activity and the empirical literature has developed different methods towards valuing household production without, however, providing a rigorous theoretical foundation for the various approaches. We follow the literature spawned by Becker (1965) and develop a model of the household as a producer and consumer that provides a theoretical justification for the two main approaches towards valuing labour in household production, the replacement cost approach and the opportunity cost approach. We provide a justification for the replacement cost approach as a way of valuing labour input into own-account production of households but show also that in general this is an incomplete measure of full consumption. We further develop a cost-of-living index for full consumption and full household income. The consequences of the theoretical model are illustrated by a cross-country comparison, using the data by Ahmad and Koh (2011).
(This abstract was borrowed from another version of this item.)
|This chapter was published in: ||This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number
12826.||Handle:|| RePEc:nbr:nberch:12826||Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Lipsey & Helen Stone Tice, 1989. "The Measurement of Saving, Investment, and Wealth," NBER Books, National Bureau of Economic Research, Inc, number lips89-1, Enero-Jun.
- Alan B. Krueger & Andreas I. Mueller, 2012.
"The Lot Of The Unemployed: A Time Use Perspective,"
Journal of the European Economic Association,
European Economic Association, vol. 10(4), pages 765-794, 08.
- Alan B. Krueger & Andreas Mueller, 2008. "The Lot of the Unemployed: A Time Use Perspective," Working Papers 1062, Princeton University, Department of Economics, Industrial Relations Section..
- Krueger, Alan B. & Mueller, Andreas I., 2008. "The Lot of the Unemployed: A Time Use Perspective," IZA Discussion Papers 3490, Institute for the Study of Labor (IZA).
- Carol Corrado & John Haltiwanger & Dan Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1, Enero-Jun.
- Pollak, Robert A., 1989. "The Theory of the Cost-of-Living Index," OUP Catalogue, Oxford University Press, number 9780195058703.
- Nadim Ahmad & Seung-Hee Koh, 2011. "Incorporating Estimates of Household Production of Non-Market Services into International Comparisons of Material Well-Being," OECD Statistics Working Papers 2011/7, OECD Publishing. Full references (including those not matched with items on IDEAS)