Journal article
Using theory for measurement: An analysis of the cyclical behavior of home production
Journal of monetary economics, Vol.40(3), pp.435-456
12/01/1997
DOI: 10.1016/S0304-3932(97)00058-5
Abstract
A significant amount of economic activity takes place within the home. Unfortunately, it is difficult to assess the cyclical properties of home production because the available data are too sporadic. Using a real business cycle (RBC) model, we construct quarterly data on three variables that are unobservable at a quarterly frequency: hours worked in the home sector, hours spent in leisure, and the consumption of home-produced goods. Three results emerge: leisure is countercyclical while nonmarket hours are acyclical; hours spent in home production have declined significantly since the 1970s; fluctuations in market output are a good measure of fluctuations in individual utility as long as home and market consumption are either extreme complements or extreme substitutes in the production of utility.
Details
- Title: Subtitle
- Using theory for measurement: An analysis of the cyclical behavior of home production
- Creators
- Beth F. Ingram - University of IowaNarayana R. Kocherlakota - Federal Reserve Bank of MinneapolisN.E. Savin - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of monetary economics, Vol.40(3), pp.435-456
- DOI
- 10.1016/S0304-3932(97)00058-5
- ISSN
- 0304-3932
- eISSN
- 1873-1295
- Publisher
- Elsevier B.V
- Number of pages
- 22
- Language
- English
- Date published
- 12/01/1997
- Academic Unit
- Economics
- Record Identifier
- 9984963042302771
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