Does home production drive structural transformation?

Moro, Alessio, Moslehi, Solmaz and Tanaka, Satoshi (2017) Does home production drive structural transformation?. American Economic Journal: Macroeconomics, 9 3: 116-146. doi:10.1257/mac.20150109

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Author Moro, Alessio
Moslehi, Solmaz
Tanaka, Satoshi
Title Does home production drive structural transformation?
Journal name American Economic Journal: Macroeconomics   Check publisher's open access policy
ISSN 1945-7707
Publication date 2017-07-01
Sub-type Article (original research)
DOI 10.1257/mac.20150109
Open Access Status File (Publisher version)
Volume 9
Issue 3
Start page 116
End page 146
Total pages 31
Place of publication Nashville, TN, United States
Publisher American Economic Association
Language eng
Abstract Using new home production data for the US, we estimate a model of structural transformation with a home production sector, allowing for both non-homotheticity of preferences and differential productivity growth in each sector. We report two main findings. First, the estimation results show that home services have a lower income elasticity than market services. Second, the slowdown in home labor productivity, started in the late 70s, is a key determinant of the rise of market services. Our counterfactual experiment shows that, without the slowdown, the share of market services would be lower by 7.5 percent in 2010.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
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Created: Mon, 06 Feb 2017, 13:23:53 EST by Karen Warren on behalf of School of Economics