Household economics

Household economics analyses all the decisions made by a household. These analyses are both at the microeconomic and macroeconomic level. This field analyses the structures of households, the behavior of family members, and their broader influence on society, including: household consumption, division of labour within the household, allocation of time to household production, marriage, divorce, fertility, investment in children, and resource allocation.[1] Malthus and Adam Smith studied the economics of the family in part by looking at the relationship between family size and living wage.[2][3] Similarly, J.S. Mill and Le Play analysed the impacts of different family structures on the standard of living of different family members through redistribution of family resources, insurance and self production.[4][5]

Since the beginning of the 20th century, most economists have focused on business and monetary dimensions of the economy without consideration of household behaviour. The study of consumption and household production was marginalized by mainstream economics.[6] Economics theory applied to households, however, can help to understand interactions between the public and private sectors of society in ways that inform policies related to education, health, welfare and retirement.

Household economics can be divided into two models: the unitary model and the collective model.

  1. ^ Kooreman, Peter; Wunderink, Sophia (1997-03-14). The Economics of Household Behavior. Bloomsbury Publishing. ISBN 978-1-349-25436-1.
  2. ^ Malthus, T. R. (Thomas Robert) (1798). An essay on the principle of population, as it affects the future improvement of society. With remarks on the speculations of Mr. Godwin, M. Condorcet and other writers. Fisher - University of Toronto. London, J. Johnson.
  3. ^ Smith, Adam (2010-08-27). The Wealth of Nations: An Inquiry into the Nature and Causes of the Wealth of Nations. Harriman House Limited. ISBN 978-1-906659-87-5.
  4. ^ Mill, John Stuart (1888). Principles of political economy : with some of their applications to social philosophy. University of California Libraries. London : Longmans, Green, and co.
  5. ^ Parsons, Talcott (1961). Theories of society; foundations of modern sociological theory. University of California Libraries. New York] : Free Press of Glencoe.
  6. ^ P., Burggraf, Shirley (1999). The feminine economy and economic man : reviving the role of family in the post-industrial age. Perseus Books. OCLC 1034666786.{{cite book}}: CS1 maint: multiple names: authors list (link)