IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61184.html
   My bibliography  Save this paper

Consumption Time in Household Production: Implications for the Goods-Time Elasticity of Substitution

Author

Listed:
  • Baral, Ranju
  • Davis, George C.
  • You, Wen

Abstract

The relationship between the goods-time elasticity of substitution with consumption time as an input and the goods-time elasticity of substitution without consumption time as an input is derived analytically. Under some reasonable assumptions, the goods-time elasticity of substitution is shown to be greater if consumption time is not included as an input. An empirical example of food production for single headed households is consistent with this result and indicates the goods-time elasticity of substitution is about 60% greater when consumption time is not included as an input than when it is included.

Suggested Citation

  • Baral, Ranju & Davis, George C. & You, Wen, 2010. "Consumption Time in Household Production: Implications for the Goods-Time Elasticity of Substitution," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61184, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea10:61184
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/61184/files/AAEA_2010_poster.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
    2. Daniel S. Hamermesh, 2007. "Time to Eat: Household Production under Increasing Income Inequality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 852-863.
    3. George C. Davis & C. Richard Shumway, 1996. "To Tell the Truth about Interpreting the Morishima Elasticity of Substitution," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(2), pages 173-182, July.
    4. Hamermesh, Daniel S., 2008. "Direct estimates of household production," Economics Letters, Elsevier, vol. 98(1), pages 31-34, January.
    5. Daniel S. Hamermesh, 2007. "Time to Eat: Household Production under Increasing Income Inequality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 852-863.
    6. Charles Blackorby & Daniel Primont & R. Russell, 2007. "The Morishima gross elasticity of substitution," Journal of Productivity Analysis, Springer, vol. 28(3), pages 203-208, December.
    7. Pollak, Robert A & Wachter, Michael L, 1975. "The Relevance of the Household Production Function and Its Implications for the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 255-277, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davis, George C. & You, Wen, 2013. "Estimates of returns to scale, elasticity of substitution, and the thrifty food plan meal poverty rate from a direct household meal production function," Food Policy, Elsevier, vol. 43(C), pages 204-212.
    2. Daniel Kuehn, 2016. "Home Production, House Values, and the Great Recession," Journal of Family and Economic Issues, Springer, vol. 37(1), pages 99-114, March.
    3. Carla Canelas & François Gardes & Philip Merrigan & Silvia Salazar, 2014. "Are Time and Money Equally Substitutable for All Commodity Groups in the Household's Domestic Production?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01112620, HAL.
    4. 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.
    5. George Davis, 2014. "Food at home production and consumption: implications for nutrition quality and policy," Review of Economics of the Household, Springer, vol. 12(3), pages 565-588, September.
    6. Tamar Khitarishvili & Fernando Rios Avila & Kijong Kim, 2015. "Direct Estimates of Food and Eating Production Function Parameters for 2004–12 Using an ATUS/CE Synthetic Dataset," Economics Working Paper Archive wp_836, Levy Economics Institute.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61184. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.