A Two-Sector Model of Home Production
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AbstractThis paper develops a two-sector model of home and market production to examine the role played by home production on the development of the aggregate economy. Based on the time-use data across countries, we allow for a fraction of the home-produced good to be sold to the market sector so as to understand the relation between the size of the home production sector and economic growth. When the size of the home sector changes, its macroeconomic effects depend on the capital intensities of the two sectors. We find that the effect of household production on the SNA (System of National Accounts) -output can be decomposed into a direct effect from its scale and an indirect effect through the sectoral reallocation of labor, working at opposite directions.
Acceptance Date18/06/2017
All Author(s) ListLAM Chak Hong Leo, Chong Kee Yip
Name of Conference2017 North American Summer Meeting
Start Date of Conference15/06/2017
End Date of Conference18/06/2017
Place of ConferenceSt Louis, MO
Country/Region of ConferenceUnited States of America
LanguagesEnglish-United States
Keywordshome production, time allocation, factor intensity, macroeconomic stability.

Last updated on 2018-27-04 at 10:55