Estimating Time Demand Elasticities Under Rationing

Victoria Prowse

No 209, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: A multivariate extension of the standard labour suppy model is presented. In the multivariate time allocation model leisure is disaggregated into a number of non market activities including sports, volunteer work and home production. Using data from the 2000 UK Time Use Survey, a linear expenditure system is estimated, allowing corner solutions in the time allocated to market work and non market activities. The effects of children, age, gender and education are largely as expected. The unusually high wage elasticities are attributed to a combination of the functional form of the linear expenditure and the treatment of the zero observations.

Keywords: Time Use; Labour Supply; Corner Solutions; Simulation Inference (search for similar items in EconPapers)
JEL-codes: C15 C34 J22 (search for similar items in EconPapers)
Date: 2004-10-01
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Citations: View citations in EconPapers (2)

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Working Paper: Estimating Time Demand Elasticities Under Rationing (2004)
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