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TIME VS. GOODS: THE VALUE OF MEASURING HOUSEHOLD PRODUCTION TECHNOLOGIES
Author(s) -
Gronau Reuben,
Hamermesh Daniel S.
Publication year - 2006
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.2006.00173.x
Subject(s) - production (economics) , consumption (sociology) , economics , welfare , endogenous growth theory , distribution (mathematics) , value (mathematics) , goods and services , microeconomics , economy , market economy , mathematics , mathematical analysis , social science , machine learning , sociology , computer science , human capital
We take U.S. and Israeli household data on expenditures of time and goods, generate an exhaustive set of commodities that households produce/consume using them, and calculate their relative goods intensities. Leisure activities are uniformly relatively time intensive, health, travel and lodging relatively goods intensive. We demonstrate how education and age alter the goods intensity of household production. The results of this accounting can be used as guides to: understanding how goods and income taxation interact to affect welfare; expanding notions of the determinants of international flows of goods; generating models of business cycles and endogenous growth to include interactions of goods and time consumption; and obtaining better measures of the distribution of well being.