IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Home production and the allocation of time and consumption over the life cycle

Listed author(s):
  • J. de Ree
  • R. Alessie

This paper estimates a model of female time allocation and non-durable consumption in an intertemporal utility maximization framework. We are using rather extensive but relatively unexploited series of repeated cross sections from the Dutch B.O. consumer expenditure survey from Statistics Netherlands (1978- 2000). As male labor supply is known to respond rather inelastically to wage changes –perhaps due to restrictions on the labor market– we condition on male labor supply in the analysis. We specify assumptions on domestic production technology that allows us to estimate labor supply elasticities that are consistent with non-separable preferences over consumption, leisure and a non-marketable domestically produced good, without the explicit use of time-use data. We find that when intertemporal re-allocation of resources is taken into account female labor supply elasticities increase about 50% in size relative to what we find in a static framework (1.1 to about 1.7). Furthermore, we identify parameters of intertemporal allocation on a log linearized Euler equation using a synthetic panel with a large T dimension. The intertemporal allocation parameter is of reasonable size, but is imprecisely estimated. Moreover, we find that current income is a significant predictor for consumption growth (conditional on demographics). This could be interpreted as evidence against the validity of our version of the life cycle model. We do however offer a number of different explanations for this finding.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Utrecht School of Economics in its series Working Papers with number 08-17.

in new window

Date of creation: Jul 2008
Handle: RePEc:use:tkiwps:0817
Contact details of provider: Postal:
P.O. Box 80125, NL-3508 TC Utrecht

Phone: +31 30 253 9800
Fax: +31 30 253 7373
Web page:

More information through EDIRC

Order Information: Email:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:use:tkiwps:0817. 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: (Marina Muilwijk)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.