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Consumer Expenditure Surveys
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Consumption Symposium: Broadening Our Understanding of Household Consumption and Measurement, September 22-23, 2021

Incorporating Home Production in a Measure of Consumption (PDF)

Jeehoon Han - Zhejiang University - jeehoonhan3@gmail.com

Economic welfare depends on both market and non-market consumptions. The main challenge to construct a broad measure of consumption that includes home production is that measures of consumption and home production are not typically available in the same data source. We address this issue by imputing home production in the Consumer Expenditure Surveys (CE). Specifically, we first use the American Time Use Surveys (ATUS) to estimate the relationship between home production and observable characteristics that are also available in the CE. We then use these estimates to predict home production for each adult in the CE. We demonstrate that these characteristics, especially when including work hours, explain most of the long run variation in home production. Finally, we value home production using market wages to incorporate home production into a measure of consumption, and examine its implications for consumption distribution.

 

Last Modified Date: November 10, 2021