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Abstract

Vol. 52, No. 2, pp. 132-142 (2001)

“Leisure and Consumption Demand”
Kazuo Ogawa (Institute of Social and Economic Research, Osaka University), Kazuaki Okamura (Faculty of Humanities and Economics, Kochi University)

We examine the effects of leisure on household commodity demands using data on monthly expenditure from Japanese Household Expenditure Survey during 1970 to 1996. Specifically we test the separability of commodity demands from leisure based on conditional demand functions. Separability is decisively rejected and it is found that as the time allocated to leisure increases, the total expenditure elasticity of recreation and housing rises, while that of clothing and medical care falls.