On the Allocation of Time

Dürnecker, Georg ; Herrendorf, Berthold

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URL: https://ub-madoc.bib.uni-mannheim.de/35937
URN: urn:nbn:de:bsz:180-madoc-359375
Document Type: Working paper
Year of publication: 2014
The title of a journal, publication series: Working Paper Series
Volume: 14-09
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > VWL, Angewandte Makroökonomik (Juniorprofessur) (Dürnecker 2010-2017)
MADOC publication series: Department of Economics > Working Paper Series
Subject: 330 Economics
Classification: JEL: B1 , J4,
Keywords (English): time allocation , home production , leisure , taxes
Abstract: We document for the US and Continental Europe that home–production time remained essentially flat during the last 50 years while changes in market time and leisure offset each other. We then focus on the US and France during 1970–2005 which are on the opposite sides of the spectrum: while US market time did not change much, French market time decreased most strongly. We document for the US and France that capital in home production and imputed labor productivities of home production have risen. We build a version of the growth model with capital in market and home production to account for the time allocation in both countries. We find that the interaction between taxes, home capital, and home–labor–augmenting technical change is crucial.

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