EconPapers    
Economics at your fingertips  
 

Home Production with Time to Consume

William Bednar and Nick Pretnar
Additional contact information
William Bednar: Tepper School of Business
Nick Pretnar: Carnegie Mellon University, Tepper School of Business

No 328, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: We construct a general equilibrium model with home production where consumers choose how much time to spend using market purchases. With aggregate United States consumption data and the American Time Use Survey, we observe that relative consumption of goods to services has fallen while the relative time households' spending using goods to services has risen. Our estimates reveal that using services has become relatively more productive than using goods in home production. This is because the outputs of the home production process are complementary, so price elasticities of relative goods/services consumption and relative goods/services time use have opposite sign. Our framework explains the observed negative co-movement of relative consumption to relative off-market time use since the early 2000s. In counterfactual analyses, we discuss the implications of our findings for the structural transformation of the U.S. economy from a goods dominated one to one where services play a larger role.

New Economics Papers: this item is included in nep-dge
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2019/paper_328.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:328

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-10-24
Handle: RePEc:red:sed019:328