SATELLITE ACCOUNTS OF HOUSEHOLD PRODUCTION

Transcription

1 SATELLITE ACCOUNTS OF HOUSEHOLD PRODUCTION Ajit Zacharias Levy Economics Institute of Bard College Prepared for the panel organized by UN Women and the UN Statistics Division, New York, February 28, 2013

2 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 2 In memoriam Cardiss Collins Luisella Goldschmidt-Clermont

3 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 3 Outline Why a satellite account of household production? Why not in the core? Satellite account GDP satellite vs. GDP-NIPA Principal function approach Information requirements: Time-use survey Valuation of labor input Improving time-use surveys

4 2/28/ Why satellite and not core? SNA (2008: paragraphs ) rationale: Separate spheres: Household production and rest of the economy have limited links with each other Corollary: Economic policy has no effect on household production; household production has no effect on major macroeconomic variables (e.g. tax revenues) Absence of market prices: Raises hard-to-resolve valuation problems Definition of economically active population: Eliminates unemployment Zacharias(Levy Institute): Satellite account of household production

5 2/28/ Questionable rationale I Separate spheres? Consumer goods serve as inputs into household production Household production contributes to the maintenance and nurturing of current and future workers for the rest of the economy Economic policy affects levels of household production Levels of household production affects macroeconomic variables Zacharias(Levy Institute): Satellite account of household production

6 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 6 Questionable rationale II Missing prices? Circular argument Shadow prices exist (much more so than for public goods) Confounding employment statistics? Distinction between home production vs. employed/unemployed is well-understood New terminology may be all that is needed

7 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 7 Conventional GDP vs. Satellite GDP Satellite GDP Conventional GDP plus Value of household production minus Adjustments: Personal consumption expenditures considered as intermediate inputs into household production (nondurables) Personal consumption expenditures on consumer durables Services of owner-occupied housing (imputed rent) Household production of goods Value of household production Nonmarket household services (value of labor input) plus Intermediate consumption (value of intermediate inputs) plus Services of consumer durables plus Services of owner-occupied housing (imputed rent) plus Nonmarket household production of goods

8 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 8 Conventional Income vs. Satellite Income Satellite Personal Income Satellite Labor Income Conventional Personal Income plus Conventional Labor Income plus Nonmarket household services (value of labor input) plus Nonmarket household services (value of labor input) Services of consumer durables

9 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 9 Principal function approach (with examples) Principal activity Housing Cleaning the house Meals, snacks and drinks Cooking meals Clothing and laundry service Washing clothes Care of children and adults in need Bathing babies Shopping Travel and transportatio n Household management Cleaning supplies Groceries Detergent Diapers Travel related to each of the principal functions (e.g. transporting children to doctor) Planning and organizing activities for each of the principal functions

10 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 10 Information requirements: Timeuse Value of household production Nonmarket household services Nonmarket household goods Source of information Time spent on household production Intermediate consumption allocated toward household production - Differentiation of inputs by activity Services of owner-occupied housing - Differentiation of services by activity Time spent on household production plus time spent on other household activities Services of vehicles - Differentiation of services by activity Services of consumer durables other than vehicles Time spent on travel related to household production and other household activities Sources of information other than time-use

11 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 11 Valuation method I End of a debate Opportunity cost (Loser) Replacement cost (Winner) Continuing debate: variants of replacement cost Generalist ( housekeeper ) wage Specialist wage Adjustments for heterogeneity in labor input??

12 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 12 Valuation method II Advocacy of productivity adjustment: Beyond the Market report by the National Academy of Science (US) Implemented by discounting the wage rates of specialists in certain tasks (Landefeld et al. 2009): 75% of the wages in cooking, cleaning, odd jobs, and gardening categories 100% for other categories (including childcare)

13 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 13 Choice of valuation method Choose the method that best reflects the costs of outsourcing of household production individual countries (housekeeper, specialist or even underground workers wages) Data constraints Some countries may not have occupational coding for housekeepers (generalist) (e.g., U.S., Turkey) Small cell sizes for certain occupations

14 2/28/2013 Zacharias(Levy Institute): Satellite account of household production 14 Improving time-use data Measurement of care Distinguish between physical care and supervision Secondary activities On-call responsibility (not an activity!) Contextual variables Include for whom, paid/unpaid and where Background information Consumer durables and their uses Sources of water and energy Income and/or expenditures