American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Taxes and Time Use: Fiscal Policy in a Household Production Model
American Economic Journal: Macroeconomics
vol. 5,
no. 1, January 2013
(pp. 168–92)
Abstract
Time use data on work and leisure is presented for a broad group of OECD countries. The home production model explicitly accounts for taxes and public expenditures on day care and elder care, substitutes for work households perform at home. Taxes are important for matching time use patterns in Canada, the UK, and continental Europe, but cannot explain the high levels of market work and low levels of home work observed in Scandinavia. Subsidies of services like day care that substitute for home work are shown to be quantitatively important for bringing both market and home work predictions in line with the data. (JEL D13, E62, J13, J14)Citation
Ragan, Kelly S. 2013. "Taxes and Time Use: Fiscal Policy in a Household Production Model." American Economic Journal: Macroeconomics, 5 (1): 168–92. DOI: 10.1257/mac.5.1.168Additional Materials
JEL Classification
- D13 Household Production and Intrahousehold Allocation
- E62 Fiscal Policy
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
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