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A Solution to the estimation of an Enlarged GDP Including Domestic Production: An Estimation on Micro Data

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Abstract

Using a generalization of the Becker's time allocation model to estimate the shadow price of time, the article proposes to evalutate the component of home production which could be substituted by market goods and services. An enlarged households' total expenditure including the production of the informal sector and the value of domestic production and the corresponding enlarged GDP are compared to their monetary counterparts in five developed and under-developed countries. Domestic production substituable to market goods corresponds to 23 to 41% of the GDP in Canada, France, Poland and the US, but much less in Burkina Faso because of much lower opportunity cost of time and elasticity of substitution. Finally, the enlarged GDP including the informal sector is larger by 40% than the official GDP in the three developed countries, 34% in Poland and by 54% in Burkina Faso

Suggested Citation

  • François Gardes, 2021. "A Solution to the estimation of an Enlarged GDP Including Domestic Production: An Estimation on Micro Data," Documents de travail du Centre d'Economie de la Sorbonne 21024, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:21024
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    References listed on IDEAS

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    6. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01535172, HAL.
    7. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Post-Print halshs-01535172, HAL.
    8. Anil Alpman & François Gardes & Noel Thiombiano, 2017. "Statistical Matching for Combining Time-Use Surveys with Consumer Expenditure Surveys: An Evaluation on Real Data," Post-Print halshs-01529699, HAL.
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    More about this item

    Keywords

    Domestic Production; Time Allocation; GDP; Opportunity Cost of Time;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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