Returns to scale in food preparation and the Deaton–Paxson puzzle

Thomas Crossley () and Yuqian Lu ()
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Yuqian Lu: Statistics Canada

Review of Economics of the Household, 2018, vol. 16, issue 1, No 2, 5-19

Abstract: Abstract We consider returns to scale in food preparation as a potential resolution of a puzzle raised by Deaton and Paxson (Journal of Political Economy, 106(5), 897–930, 1998). We clarify the conditions under which returns to scale in food preparation can resolve the puzzle. The key requirement is that foods are heterogeneous in time costs. We then show that detailed food expenditure and time use data are consistent with larger households shifting to more time intensive foods.

Keywords: Household returns to scale; Home production; Food preparation; Time use (search for similar items in EconPapers)
JEL-codes: D11 D12 D13 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11150-017-9399-4

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