Download This PaperA 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
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A Simple Identification Strategy for Gary Becker's Time Allocation Model
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: Suggested Citation
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