The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Home Production

  • Yongsung Chang
  • Andreas Hornstein
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2733

Abstract

Studying the incentives and constraints in the non-market sector – that is, home production – enhances our understanding of economic behaviour in the market. In particular, it helps us to understand (a) small variations of labour supply over the life cycle, (b) the low correlation between employment and wages over the business cycle, and (c) large income differences across countries.

Keywords

Capital accumulation Cobb–Douglas functions Elasticity of substitution Home production Hours worked Income differences Intertemporal substitution elasticity IS–LM Labour supply Labour supply elasticities Leisure Michigan Time Use Survey National income accounts Neoclassical growth theory Non-market activity Real business cycles Stochastic growth model Technical progress Total factor productivity 

JEL Classification

D4 D10 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Yongsung Chang
    • 1
  • Andreas Hornstein
    • 1
  1. 1.