The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data

Article dans une revue: This article uses an allocation of time framework following Becker, to propose a new method to estimate the opportunity cost of time and price elasticities at a micro level. As expected, the estimate of the value of time performed by matching the INSEE Family Budget and Time Use surveys is close to the minimum wage rate and positively correlated with household wages, incomes and relative incomes, as well as with the presence of children. Using this estimate, full prices are derived, allowing the computation of cross-section data of price elasticities, elasticities with respect to time use, as well as to the opportunity cost of time.

Auteur(s)

François Gardes

Revue
  • Annals of Economics and Statistics
Date de publication
  • 2019
Mots-clés JEL
C33 D1 D13 J22
Mots-clés
  • Economy
  • Allocation of Time
  • Full Price
  • Opportunity Cost of Time
  • Price Elasticity
  • Time Elasticity
Pages
  • 89-120
Version
  • 1
Volume
  • 135