Home Production in Endogenous GrowthJournal of Economic Behavior & Organization (2010)
AbstractWe introduce a model of endogenous growth that is driven by the augmentation of a stock of information generated as a by-product of household consumption activities. We distinguish human capital that is generated through use of stocks of information in home activities from human capital that is the result of formal education and on-the-job training. The growth rate in our model is determined via a preference measure unrelated to the rate of time preference. Our model can generate persistence in growth rates, nonergodic growth, and persistent inequality. Empirical results we report operationalize the preference measure and demonstrate its relationship to demand for information-intense print media in personal consumption. We also demonstrate a relationship between an estimate of the household stock of information cumulated from information-intense print media and labor productivity. Directions for further consideration of growth implications of personal consumption activities are noted.
Citation InformationSteven D. Silver and Randal Verbrugge. "Home Production in Endogenous Growth" Journal of Economic Behavior & Organization Vol. 75 Iss. 2 (2010)
Available at: http://works.bepress.com/steven_silver1/2/