The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data

François Gardes ()
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François Gardes: 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

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Abstract: This article uses an allocation of time framework following Becker, to propose a new method to estimate the opportunity cost of time and price elasticities at a micro level. As expected, the estimate of the value of time performed by matching the INSEE Family Budget and Time Use surveys is close to the minimum wage rate and positively correlated with household wages, incomes and relative incomes, as well as with the presence of children. Using this estimate, full prices are derived, allowing the computation of cross-section data of price elasticities, elasticities with respect to time use, as well as to the opportunity cost of time.

Keywords: Economy; Allocation of Time; Full Price; Opportunity Cost of Time; Price Elasticity; Time Elasticity (search for similar items in EconPapers)
Date: 2019-09
Note: View the original document on HAL open archive server: https://hal.science/hal-01478052v1
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Published in Annals of Economics and Statistics, 2019, 135, pp.89-120. ⟨10.15609/annaeconstat2009.135.0089⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01478052

DOI: 10.15609/annaeconstat2009.135.0089

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