A Solution to the estimation of an Enlarged GDP Including Domestic Production: An Estimation on Micro Data

François Gardes ()
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François Gardes: Centre d'Economie de la Sorbonne, Paris School of Economics & Western Catholic University, https://cv.archives-ouvertes.fr/francois-gardes

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Using a generalization of the Becker's time allocation model to estimate the shadow price of time, the article proposes to evalutate the component of home production which could be substituted by market goods and services. An enlarged households' total expenditure including the production of the informal sector and the value of domestic production and the corresponding enlarged GDP are compared to their monetary counterparts in five developed and under-developed countries. Domestic production substituable to market goods corresponds to 23 to 41% of the GDP in Canada, France, Poland and the US, but much less in Burkina Faso because of much lower opportunity cost of time and elasticity of substitution. Finally, the enlarged GDP including the informal sector is larger by 40% than the official GDP in the three developed countries, 34% in Poland and by 54% in Burkina Faso

Keywords: Domestic Production; Time Allocation; GDP; Opportunity Cost of Time (search for similar items in EconPapers)
JEL-codes: D31 J22 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2021-03
New Economics Papers: this item is included in nep-isf, nep-iue and nep-mac
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http://mse.univ-paris1.fr/pub/mse/CES2021/21024.pdf (application/pdf)
https://halshs.archives-ouvertes.fr/halshs-03325362

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:21024

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