Abstract
We use scanner data and time diaries to document how households substitute time for money through shopping and home production. We document substantial hetero-geneity in prices paid for identical goods for the same area and time, with older households shopping the most and paying the lowest prices. Doubling shopping frequency lowers a good's price by 7 to 10 percent. We estimate the shopper's price of time and use this series to estimate an elasticity of substitution between time and goods in home production of roughly 1.8. The observed life-cycle time allocation implies a consumption series that differs markedly from expenditures.
Original language | English (US) |
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Pages (from-to) | 1533-1559 |
Number of pages | 27 |
Journal | American Economic Review |
Volume | 97 |
Issue number | 5 |
DOIs | |
State | Published - Dec 2007 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics