Home production – Enjoying the process or the product?

Mette Gørtz

Household production, process benefits, consumption benefits, GMM 3SLS

This paper tests a household production model on data from a Danish time use survey from 2001 using GMM 3SLS. Household production includes “process benefits” accruing from the pleasure of undertaking certain housework tasks. I find no significant evidence of “process benefits”. An identification problem arises from the situation where households alternatively attach extra value to consuming home-produced goods. The outcome of these two types of benefits may in certain cases be observationally equivalent.