TY  - JOUR
AU  - Rogerson,Richard
TI  - Market Work, Home Work and Taxes: A Cross Country Analysis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14400
PY  - 2008
Y2  - October 2008
UR  - http://www.nber.org/papers/w14400
L1  - http://www.nber.org/papers/w14400.pdf
N1  - Author contact info:
Richard Rogerson
Woodrow Wilson School of
Public and International Affairs
323 Bendheim Hall
Princeton University
Princeton, NJ 08544
Tel: 609-258-4839
Fax: 609-258-5349
E-Mail: rdr@princeton.edu
AB  - This paper uses a simple model of labor supply extended to allow for home production to understand the extent to which differences in taxes can account for differences in time allocations between the US and Europe. Once home production is included, the elasticity of substitution between consumption and leisure is almost irrelevant in determining the response of market hours to higher taxes. But to account for observed differences in leisure and time spent in home production, one requires a large elasticity of substitution between consumption and leisure, and a small elasticity of substituion betwen time and goods in home production.
ER  -