Are taxes a good predictor of time use patterns? Examining the role of some key elasticities

C-Tier
Journal: Economic Modeling
Year: 2016
Volume: 55
Issue: C
Pages: 394-400

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A home-production model is used to explain the allocation of time between leisure, work and home production. We show that differences in taxes alone explain to a great extent the time use patterns in a set of OECD countries once several key elasticities — the elasticity of substitution between market- and home-produced goods, the Frisch elasticity of labor supply, and the relative risk aversion — are set according to empirical evidence. We also show that a realistic calibration of these key elasticities results to be more important than introducing government expenditures substitutive for home-produced goods in order to bring the model's time use predictions in line with data. This is true even for Scandinavian countries, which had posed a challenge in previous studies.

Technical Details

RePEc Handle
repec:eee:ecmode:v:55:y:2016:i:c:p:394-400
Journal Field
General
Author Count
1
Added to Database
2026-01-25