Citation

Douglas JB, Kennedy GM, Miller TR. J. Forensic Econ. 1990; 4(1): 25-45.

Copyright

(Copyright © 1990, National Association of Forensic Economics)

DOI

unavailable

PMID

unavailable

Abstract

The economics literature suggests several uses for the value of (non-market) household production. One application addresses litigation testimony, using the value of housekeeping services to determine appropriate compensation in cases of injury, death, and divorce. The literature also emphasizes the need to include household production in an expanded definition of GNP, to enhance GNP-based welfare measures. Such an expanded GNP definition would also permit re-emphasis of the economic contribution by full-time homemakers. Further, Janice Peskin (1984) adds that per-person values of household production are needed by policymakers to evaluate tax and social insurance reforms to insure equitable treatment of one- and two-earner families and divorced homemakers.

Policy makers have increasingly concerned themselves with investment in public health and safety. To determine appropriate levels of safety investment, they must understand the costs of death and injury due to crime, defective consumer products, motor vehicle crashes, and other causes. The costs of these incidents cannot be fully assessed without an understanding of the value of lost household production. Since the value of household production is often estimated at 29--49 percent of GNP, it has a significant impact on benefit-cost calculations.