Working Paper: NBER ID: w9650
Authors: Reuben Gronau; Daniel S. Hamermesh
Abstract: 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.
Keywords: household production; goods intensity; time allocation; education; age
JEL Codes: J1; E3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| education (I29) | goods intensity of household production (D13) |
| age (J14) | goods intensity of household production (D13) |
| education (I29) | time allocated to household production (D13) |