Homework in labor economics: Household production and intertemporal substitution

Peter Rupert; Richard Rogerson; Randall Wright

doi:10.1016/S0304-3932(00)00038-6

Homework in labor economics: Household production and intertemporal substitution

Peter Rupert, Richard Rogerson, Randall Wright

Research output: Contribution to journal › Article › peer-review

44 Scopus citations

Abstract

We argue that estimates of intertemporal substitution elasticities obtained from standard life cycle models are subject to a downward bias because they neglect changes in work done at home over the life cycle. We extend the standard life cycle model to include home production and estimate it using data from three time use surveys. We find that the downward bias is large.

Original language	English (US)
Pages (from-to)	557-579
Number of pages	23
Journal	Journal of Monetary Economics
Volume	46
Issue number	3
DOIs	https://doi.org/10.1016/S0304-3932(00)00038-6
State	Published - Dec 2000
Externally published	Yes

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

Keywords

D1
Home production
Intertemporal substitution
J2

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10.1016/S0304-3932(00)00038-6

Cite this

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title = "Homework in labor economics: Household production and intertemporal substitution",

abstract = "We argue that estimates of intertemporal substitution elasticities obtained from standard life cycle models are subject to a downward bias because they neglect changes in work done at home over the life cycle. We extend the standard life cycle model to include home production and estimate it using data from three time use surveys. We find that the downward bias is large.",

keywords = "D1, Home production, Intertemporal substitution, J2",

author = "Peter Rupert and Richard Rogerson and Randall Wright",

note = "Funding Information: We thank Mark Bils, Larry Christiano, Ken Wolpin, Marty Eichenbaum, Bob Hall, John Kennan, Petra Todd, and seminar participants at UCLA, UC Riverside, Stanford, Rochester, the Federal Reserve Bank of Cleveland, and the NBER Summer Institute for their input. We also thank Casey Mulligan, who provided us with his tax data. Rogerson and Wright acknowledged support from the NSF. Part of this research was completed while Rogerson and Wright were visiting scholars at the Federal Reserve Bank of Cleveland. ",

year = "2000",

month = dec,

doi = "10.1016/S0304-3932(00)00038-6",

language = "English (US)",

volume = "46",

pages = "557--579",

journal = "Journal of Monetary Economics",

issn = "0304-3932",

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TY - JOUR

T1 - Homework in labor economics

T2 - Household production and intertemporal substitution

AU - Rupert, Peter

AU - Rogerson, Richard

AU - Wright, Randall

N1 - Funding Information: We thank Mark Bils, Larry Christiano, Ken Wolpin, Marty Eichenbaum, Bob Hall, John Kennan, Petra Todd, and seminar participants at UCLA, UC Riverside, Stanford, Rochester, the Federal Reserve Bank of Cleveland, and the NBER Summer Institute for their input. We also thank Casey Mulligan, who provided us with his tax data. Rogerson and Wright acknowledged support from the NSF. Part of this research was completed while Rogerson and Wright were visiting scholars at the Federal Reserve Bank of Cleveland.

PY - 2000/12

Y1 - 2000/12

N2 - We argue that estimates of intertemporal substitution elasticities obtained from standard life cycle models are subject to a downward bias because they neglect changes in work done at home over the life cycle. We extend the standard life cycle model to include home production and estimate it using data from three time use surveys. We find that the downward bias is large.

AB - We argue that estimates of intertemporal substitution elasticities obtained from standard life cycle models are subject to a downward bias because they neglect changes in work done at home over the life cycle. We extend the standard life cycle model to include home production and estimate it using data from three time use surveys. We find that the downward bias is large.

KW - D1

KW - Home production

KW - Intertemporal substitution

KW - J2

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DO - 10.1016/S0304-3932(00)00038-6

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VL - 46

SP - 557

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JO - Journal of Monetary Economics

JF - Journal of Monetary Economics

IS - 3

ER -

Homework in labor economics: Household production and intertemporal substitution

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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