Does Home Production Drive Structural Transformation?

Alessio Moro, Solmaz Moslehi () and Satoshi Tanaka

American Economic Journal: Macroeconomics, 2017, vol. 9, issue 3, 116-46

Abstract: Using new home production data for the United States, we estimate a model of structural transformation with a home production sector, allowing for both non-homotheticity of preferences and differential productivity growth in each sector. We report two main findings. First, the estimation results show that home services have a lower income elasticity than market services. Second, the slowdown in home labor productivity, which started in the late 70s, is a key determinant of the rise of market services. Our counterfactual experiment shows that, without the slowdown, the share of market services would have been lower by 7.5 percent in 2010.

JEL-codes: D13 J24 L16 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/mac.20150109
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Citations: View citations in EconPapers (35)

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Related works:
Working Paper: Does home production drive structural transformation? (2016)
Working Paper: Does Home Production Drive Structural Transformation? (2015)
Working Paper: Does Home Production Drive Structural Transformation? (2015)
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