The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Household Production and Public Goods

  • Reuben Gronau
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2203

Abstract

Home production constitutes even in modern economies about one-third of GNP. The article discusses Becker’s theory of home production and its critiques. It develops a general model where welfare is a function of market and home goods, market work, work-at-home and leisure, focusing on problems of its identification arising from the fact that home output is not traded in the market. These problems are aggravated in the multi-person household framework, since intra-household allocation is unobserved. These difficulties have serious ramifications for the measurement of adult equivalent scales, productivity at home and home output.

Keywords

Barten method Barten, A. Becker’s household production model Children Equivalence scales Family Fertility Home goods vs. market goods Household production and public goods Intra-household distribution Kuznets, S. Leisure Marginal productivity Psychic income Real business cycles Schooling Shadow prices Time use Value of time Women’s work and wages 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Reuben Gronau
    • 1
  1. 1.