Traditional GDP measures exclude the value of goods and services outside the market, notably those produced and consumed at home by household members. This is especially problematic in less-developed settings where many people do not work for pay, and where fewer market alternatives to home production are available. Standard methods of estimating the value of home production rely on one of several sets of unrealistic assumptions. Using data from a panel survey of households, I structurally estimate the household marginal value of time—the dollar amount an agent is willing to pay for an additional hour of leisure—and use it to estimate the economy-wide value of unpaid cooking time in Mexico.
Last updated on 10/22/2018
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