TIME IN THE BUDGET OF THE CONSUMER: THE THEORY OF CONSUMER DEMAND AND LABOR SUPPLY UNDER A TIME CONSTRAINT.
Abstract
The purpose of the study is to develop and test a modification of the standard theory of consumer demand that yields implications concerning the consumer's allocation of time to consumption and income producing activities. Unlike the demand for leisure model, the theory does not treat leisure as a good or work as a bad. The consumer's time does not enter his utility function, only the quantities of goods consumed do. The consumer's time enters his budget constraint only. At a sufficiently high level of income, time may also become an additional constraint independent of the budget constraint. The principal hypothesis of the theory is that each good has a money price and a foregone earnings cost. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 15, 1970
- Accession Number
- AD0708348
Entities
People
- Arthur De Vany
Organizations
- University of California, Berkeley