TY - JOUR
T1 - The demand for variety
T2 - A household production perspective
AU - Gronau, Reuben
AU - Hamermesh, Daniel S.
PY - 2008/8
Y1 - 2008/8
N2 - Economists have devoted substantial attention to firms' supply of variety, but little to consumers' demand for variety. Employing the framework of home production, we trace differences in demand to differences in the opportunity costs of activities, associated with investments in human capital. Schooling alters time costs and changes the variety of activities household members choose. Time budgets from Australia, Israel, and West Germany show that higher own and spouses' incomes raise variety (suggesting positive income effects). Education increases variety independent of income and earnings; part of its impact goes beyond a correlation of educational attainment with preferences for variety.
AB - Economists have devoted substantial attention to firms' supply of variety, but little to consumers' demand for variety. Employing the framework of home production, we trace differences in demand to differences in the opportunity costs of activities, associated with investments in human capital. Schooling alters time costs and changes the variety of activities household members choose. Time budgets from Australia, Israel, and West Germany show that higher own and spouses' incomes raise variety (suggesting positive income effects). Education increases variety independent of income and earnings; part of its impact goes beyond a correlation of educational attainment with preferences for variety.
UR - http://www.scopus.com/inward/record.url?scp=49749095657&partnerID=8YFLogxK
U2 - 10.1162/rest.90.3.562
DO - 10.1162/rest.90.3.562
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AN - SCOPUS:49749095657
SN - 0034-6535
VL - 90
SP - 562
EP - 572
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 3
ER -
