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Direct Estimates of Food and Eating Production Function Parameters for 2004–12 Using an ATUS/CE Synthetic Dataset

Author

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  • Tamar Khitarishvili
  • Fernando Rios Avila
  • Kijong Kim

Abstract

This paper evaluates the presence of heterogeneity, by household type, in the elasticity of substitution between food expenditures and time and in the goods intensity parameter in the household food and eating production functions. We use a synthetic dataset constructed by statistically matching the American Time Use Survey and the Consumer Expenditure Survey. We establish the presence of heterogeneity in the elasticity of substitution and in the intensity parameter. We find that the elasticity of substitution is low for all household types.

Suggested Citation

  • 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.
    • Handle: RePEc:lev:wrkpap:wp_836
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    References listed on IDEAS

    as
    1. Baral, Ranju & Davis, George C. & You, Wen, 2011. "Consumption time in household production: Implications for the goods-time elasticity of substitution," Economics Letters, Elsevier, vol. 112(2), pages 138-140, August.
    2. 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.
    3. Hyunsub Kum & Thomas Masterson, 2008. "Statistical Matching Using Propensity Scores: Theory and Application to the Levy Institute Measure of Economic Wellbeing," Economics Working Paper Archive wp_535, Levy Economics Institute.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Consumption Expenditures; Elasticity of Substitution; Food Production; Household Production; Statistical Matching; Time Use;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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