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- Title
THE ELASTICITY OF SUBSTITUTION BETWEEN TIME AND MARKET GOODS: EVIDENCE FROM THE GREAT RECESSION.
- Authors
Nevo, Aviv; Wong, Arlene
- Abstract
We document a change in household shopping behavior during the Great Recession. Households purchased more on sale, larger sizes, and generic products and increased coupon usage and shopping at discount stores. We estimate a decline in returns to shopping during the recession. Therefore, the increase in shopping behavior implies a significant decrease in households' opportunity cost of time. Using the estimated cost of time and time use data, we estimate a high elasticity of substitution between market expenditure and time spent on nonmarket work. We find that households smooth a sizable fraction of consumption by varying their time allocation during recessions.
- Subjects
GREAT Recession, 2008-2013; SHOPPING; HOUSEHOLDS &; economics; TIME management; DISCOUNT houses (Retail trade)
- Publication
International Economic Review, 2019, Vol 60, Issue 1, p25
- ISSN
0020-6598
- Publication type
Article
- DOI
10.1111/iere.12343