A Simple Identification Strategy for Gary Becker's Time Allocation Model

KU LEUVEN Center for Economic Studies Discussion Paper Series DPS15.06

11 Pages Posted: 18 Apr 2015

See all articles by L. Cherchye

L. Cherchye

KU Leuven; Erasmus Research Institute of Management (ERIM)

Bram de Rock

Katholieke Universiteit Leuven - Campus Kortrijk (KULAK) - Subfaculty of Economics and Applied Economics

Frederic Vermeulen

KU Leuven

Multiple version iconThere are 2 versions of this paper

Date Written: April 7, 2015

Abstract

The implementation of Gary Becker's (1965) time allocation model is hampered by the fact that values of the different time uses are usually not observed. In practice, one often assumes that the value of time is uniform across time uses by using market wages. This approach implies a fundamental identification problem. We demonstrate that the identification problem can be solved if production shifters are available.

Keywords: time use, home production, identification, production shifter

JEL Classification: D11, D12, D13

Suggested Citation

Cherchye, Laurens and de Rock, Bram and Vermeulen, Frederic, A Simple Identification Strategy for Gary Becker's Time Allocation Model (April 7, 2015). KU LEUVEN Center for Economic Studies Discussion Paper Series DPS15.06, Available at SSRN: https://ssrn.com/abstract=2595153 or http://dx.doi.org/10.2139/ssrn.2595153

Laurens Cherchye (Contact Author)

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Bram De Rock

Katholieke Universiteit Leuven - Campus Kortrijk (KULAK) - Subfaculty of Economics and Applied Economics ( email )

Etienne Sabbelaan 53
Kortrijk, B-8500
Belgium

Frederic Vermeulen

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

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