Taxes and Time Use: Fiscal Policy in a Household Production Model | Zendy

Kelly Ragan | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Taxes and Time Use: Fiscal Policy in a Household Production Model

Author(s) -

Kelly Ragan

Publication year - 2013

Publication title -

american economic journal macroeconomics

Language(s) - English

Resource type - Journals

eISSN - 1945-7707

pISSN - 1945-7715

DOI - 10.1257/mac.5.1.168

Subject(s) - subsidy , work (physics) , production (economics) , economics , matching (statistics) , care work , time use survey , labour economics , public economics , work time , business , demographic economics , macroeconomics , market economy , mechanical engineering , engineering , statistics , mathematics

Time use data on work and leisure is presented for a broad group of OECD countries. The home production model explicitly accounts for taxes and public expenditures on day care and elder care, substitutes for work households perform at home. Taxes are important for matching time use patterns in Canada, the UK, and continental Europe, but cannot explain the high levels of market work and low levels of home work observed in Scandinavia. Subsidies of services like day care that substitute for home work are shown to be quantitatively important for bringing both market and home work predictions in line with the data. (JEL D13, E62, J13, J14)

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research