Time Use Elasticity of Substitution Estimates Conditional on Working Time Available

Armagan Tuna Aktuna-Gunes () and Okay Gunes ()
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Armagan Tuna Aktuna-Gunes: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Okay Gunes: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: We introduce the demand elasticity of available working time into the model of domestic production in order to show that the limits on discretionary times use may alter the estimates of time use elasticity of substitution good. Our elasticity estimation result for food is 0.50 in Turkey for 2007, which ranges from 0.22 to 0.56 in the literature. However, the elasticity of substitution for food rises up to 0.92 when one considers working time available with all consumption groups, suggesting that households may overcome time scarcity and increase working time by reducing time spent in the leisure, transportation, other and personal care and health categories. This process, in turn, yields good intensive consumption in Turkey. We obtain more robust estimation results by using the opportunity cost of time measurement proposed by Gardes (2016) for Turkish households in 2007. In this work, the Time Use Survey for 2006 is matched with the 2007 Household Budget Survey.

Keywords: Household production; Time use elasticity of substitution; Rubins' matching statistics; Working Time Available; Production domestiques; l'élasticité de substitution de l'utilisation du temps; l'appariement statistiques; Temps de travail disponible (search for similar items in EconPapers)
Date: 2017-02
New Economics Papers: this item is included in nep-ara
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Published in 2017

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