Extending Becker's Time Allocation Theory to Model Continuous Time Blocks: Evidence from Daylight Saving Time

55 Pages Posted: 6 Oct 2012

See all articles by Hendrik Wolff

Hendrik Wolff

University of Washington - Department of Economics; IZA Institute of Labor Economics

Momoe Makino

affiliation not provided to SSRN

Abstract

Most activities in life require a certain amount of continuous time. Yet, in the traditional economic model of time allocation, the time block is not taken into account. Hence, the same amount of utility is derived from an activity regardless of whether it is performed continuously over one time block or divided into n separated periods. This paper presents an extension of Becker's theory to model preferences over continuous time blocks. To examine whether the predictions of the model are supported by data, we exploit the extension of the 2007 U.S. Daylight Saving Time (DST) regulation which lengthens evening daylight while shortening the time block of morning daylight. Using the American Time Use Survey, we find that outdoor recreational activities significantly increase under DST, while indoor TV watching decreases. This translates into an approximate 10% increase in burnt calories. This paper concludes with policy recommendations concerning the future status of DST.

Keywords: time allocation, continuous time blocks, daylight saving time

JEL Classification: I18, I31, J22, Q48

Suggested Citation

Wolff, Hendrik and Makino, Momoe, Extending Becker's Time Allocation Theory to Model Continuous Time Blocks: Evidence from Daylight Saving Time. IZA Discussion Paper No. 6787, Available at SSRN: https://ssrn.com/abstract=2157929 or http://dx.doi.org/10.2139/ssrn.2157929

Hendrik Wolff (Contact Author)

University of Washington - Department of Economics

Box 353330
Seattle, WA 98195-3330
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Momoe Makino

affiliation not provided to SSRN

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