Chapter_9household_production

Chapter_9household_production - HouseholdProduction...

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    1 Household Production Consider a married couple. The only way to get money is to work in the  market sector and the only way to get  household commodities is to work in the  household Let’s begin by considering a “traditional” family  where the husband’s wage is higher.
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    2   Y Hg Wife Hg Y Husband Hg* Hg* Household Production
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    3 Assume the following:  (a) there are 10 available hours,  (b) w h  = 20, (c) w w  = 10, (d) Hg=10 for both Y Hg 200 Where the household ends up depends on their preferences over Hg and Y. The opportunity frontier for the couple is: 100 300 200 Wife does both, Husband mkt
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This document was uploaded on 09/04/2011.

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Chapter_9household_production - HouseholdProduction...

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