This paper addresses the question of the consistency of utility maximization in Becker's time allocation model with Pareto optimality. We find that when the general conditions of Pareto optimality are investigated, as opposed to the parochial specification of equal marginal rates of substitution across all individuals, Becker's model does, in fact, support a Pareto optimal allocation.
Get full access to this article
View all access options for this article.
References
1.
AzziC. and EhrenbergR., “Household Allocation of Time and Church Attendance,”The Journal of Political Economy, 83, February 1975:27–56.
2.
BeckerG., “A Theory of the Allocation of Time,”The Economic Journal, 75, September 1965:493–517.
3.
BorlandM. and PulsinelliR., “Household Commodity Production and Social Harassment Costs,”The Southern Economic Journal, 56, 2, October 1989:291–301.
4.
DeSerpaA. C., “On the Comparative Statics of Time Allocation,”Canadian Journal of Economics, 8, February 1975:101–11.
5.
EhrlichI., “Participation in Illegitimate Activities: A Theoretical and Empirical Investigation,”The Journal of Political Economy, 81, May-June 1973:521–565.
6.
HoltmannA. G., “Prices, Time, and Technology in the Medical Care Market,”The Journal of Human Resources, 7, Spring 1972:179–190.
7.
KrausM., “On Pareto-Optimal Time Allocation,”Economic Inquiry, 17, January 1979:142–45.
8.
PollakR. A. and WachterM. L., “The Relevance of the Household Production Function and Its Implication for the Allocation of Time,”Journal of Political Economy, 83, 1975.
9.
SamuelsonP., “The Pure Theory of Public Expenditures,”The Review of Economics and Statistics, 36, November 1954:387–89.
10.
VertinskyI. and UyenoD., “Demand for Health Services and the Allocation of Time,”Applied Economics, 5, 1973:249–60.