The Macroeconomics of Time Allocation


Aguiar, Mark, and Erik Hurst. “The Macroeconomics of Time Allocation”. Handbook of Macroeconomics. Elsevier, 2016. Print.


In this chapter we explore the macroeconomics of time allocation.  We begin with an overview of the trends in market hours in the US, both in the aggregate and for key sub-samples.  After introducing a Beckerian theoretical framework, the chapter then discusses key empirical patterns of time allocation, both in the time series (including business cycle properties) and over the lifecycle.  We focus on several core non-market activities, including home production, childcare, and leisure.  The chapter concludes with a discussion of why these patterns are important to macroeconomics and spells out directions for future research.