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Measuring Regional Welfare through a Spatial Becker Model: Time Allocation, Location Choice, and Superlative Index Theory

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  • Chihiro Shimizu

Abstract

This paper develops a spatial extension of Becker's theory of time allocation, building on the generalized household-production framework of Schreyer and Diewert (2014). Households allocate time across market labor, household work, home leisure, and external leisure at three locations: home, workplace, and amenity venues. Commuting lowers the effective time endowment; leisure travel raises the full price of external leisure. The shadow price of leisure is bounded by min{wrS,w}, extending the result of Schreyer and Diewert (2014) to a spatial setting. I derive a spatial full-income identity, equilibrium rent gradients with respect to eight parameters, second-order properties of the rent function, and connect to superlative index theory through a Regional Utility Index. An econometric framework for four corner-solution regimes maps the model into observable data.

Suggested Citation

  • Chihiro Shimizu, 2026. "Measuring Regional Welfare through a Spatial Becker Model: Time Allocation, Location Choice, and Superlative Index Theory," Working Papers e226, Tokyo Center for Economic Research.
    • Handle: RePEc:tcr:wpaper:e226
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