The Atkinson-Stiglitz Theorem and its extensions have been interpreted as implying that capital income should not be taxed. If, as seems reasonable on empirical grounds, we introduce production of household goods with close market substitutes, this conclusion no longer holds. We analyse optimal...

The implementation of Gary Becker's (1965) time allocation model is hampered by the fact that values of the different time uses are usually not observed. In practice, one often assumes that the value of time is uniform across time uses by using market wages. This approach implies a fundamental...

We analyse the effects of retirement of one partner on home production by both partners in a couple. Using longitudinal data from Germany on couples, we control for fixed household specific effects to address the concern that retirement decisions are correlated with unobserved characteristics...

Economists have previously suggested that gains from marriage can be generated by complementarities in production (gains from specialization and exchange) or by complementarities in consumption (gains from joint consumption of household public goods and joint time consumption). This paper uses...

We consider the collective model of labor supply with marketable domestic production. We first show that, if domestic production is mistakenly ignored, the collectiveʺ indirect utilities that are retrieved from observed behavior will be unbiased if and only if the profit function is additive....

Why do farm households inefficiently allocate resources across the plots they cultivate? We explore how these production inefficiencies relate to consumption decisions and information sharing within the household. In a lab-in-the-field experiment, male producers allocate too few inputs to their...

This paper proposes a dynamic structural model of labour market and childcare choices for couples within a collective model of decision making. We formalise explicitly the need for childcare as a function of the age structure of the children population in the household then examine the...

In 2020, parents' work-from-home days increased fourfold following the initial COVID-19 pandemic lockdown period compared to 2015-2019. At the same time, many daycares closed, and the majority of public schools offered virtual or hybrid classrooms, increasing the demand for household-provided...