Product‐Accounting Approach To Valuing Food Production

Abstract

This paper briefly reviews and compares the income‐accounting and product‐ accounting approaches to valuing household production. Despite the advantages of the product‐accounting estimates, published works demonstrating this ap proach could not be found. Using the example of food prepared and served at home, this research investigated a method of computing the market value of household production output and tested the estimates for responsiveness to demographic characteristics using two‐way analysis of variance. Daily market cost of food prepared at home was found to be related to area of residence and homemaker's education. The value of food prepared at home, adjusted for number of people served, was found to be related to education of the husband and of the homemaker and age of younger child. The study indicates the feasi bility of using the product‐accounting approach for traditional purposes such as valuing household production and deriving the value of a person's nonmarket labor, as well as assessing productivity in the home.

Valuing Parental Childcare in the United Kingdom

“…Fitzgerald and Wicks (1990), in a US study, point out that successfully identifying distinct output is crucial to the success of the method, and they demonstrate that it is feasible. While early examples of output-based approaches include Margaret Mietus Sanik and Kathyrn Stafford (1983) and Gordon Bivens and Carole Volker (1986), both in the US, more recent examples are rare, leading to the pragmatic view that a good input-based valuation is preferable to none at all (Katharine G. Abraham and Christopher Mackie 2005). There has been a movement toward the view that both the inputs to and outputs from household production should be quantified and valued Recording inputs and outputs in a double-entry bookkeeping system reflects the underlying system of production (Paul Studenski 1958).…”

Monetary Valuation of Non‐market Productive Time Methodological Considerations

“…Physical quantities of goods and services produced by households (in all or some non-market activities) have been estimated in several studies, both in industrialised and in other countries (Clark, 1958;Chaput-Auquier, 1959;Morgan et al, 1962;Alauddin, 1980;Dahl, 1979;Finland, Ministry of Social Affairs and Health, 1980-86;Acharya and Bennett, 1981 ;Chadeau and Pouquet, 198 1 ;Evers, 1981 ;Morgan, 1981 ;Sanik and Stafford, 1983;Hill, Martha, 1985;Lorfing and Khalaf, 1985;Bivens and Volker, 1986;Chadeau andRoy, 1987 andFitzgerald and Wicks, 1990;etc. ) Of all these studies, the most comprehensive is the Finnish "Housework Study7' because it covers the whole range of households' non-market activities and was performed, in 1979, on a representative sample of some 2,000 households.…”

Output‐Related Evaluations Of Unpaid Household Work: A Challenge for Time Use Studies

“…Evaluations based on the second approach take as a starting point household output. (Clark, 1958;Chaput-Auquier, 1959; Morgan, David, Cohen, and Brazer, 1962;Suviranta and Heinonen, 1980;Morgan, 1981;Suviranta and Mynttinen, 1981 a, b, c;Chadeau and Fouquet, 1981;Sanik and Stafford, 1982;Bryant, Gerner, and Henze, 1983;Goldschmidt-Clermont, 1983. ) Morgan et al, Chadeau and Fouquet, Sanik and Stafford, and Goldschmidt-Clermont establish output-based evaluations where the values borrowed from the market are prices: household output is valued at the prices of similar market goods and services.…”

“…. The imputed value of household output can be calculated by using the prices of market goods and services similar to those produced in households (Chadeau and Fouquet, 1981;Sanik and Stafford, 1982;Goldschmidt-Clermont, 1983).…”