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ECONOMIES OF SCALE IN THE HOUSEHOLD: PUZZLES AND PATTERNS FROM THE AMERICAN PAST
Author(s) -
LOGAN TREVON D.
Publication year - 2011
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2009.00240.x
Subject(s) - economies of scale , economics , scale (ratio) , clothing , consumer expenditure survey , economies of agglomeration , household income , economy , macroeconomics , economic growth , aggregate expenditure , microeconomics , geography , cartography , archaeology
Estimates of household economies of scale are critical for measuring income and living standards, yet we know little about how these scale economies change over time. I use American household expenditure surveys to produce the first comparable historical estimates of household scale economies. I find that scale economies changed significantly from 1888 to 1935 for all expenditure categories considered (food, clothing, entertainment, and housing), but not all trends in scale economies are consistent with theoretical predictions. As such, our notions about household economies of scale must be reassessed in light of this historical evidence. ( JEL D1, E3, I3, J1, N3)