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) |
|---|---|
| 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