Purpose: The purpose of this paper is to infer the welfare of heterogeneous agents using a representative agent model. Design/methodology/approach: It does so by partitioning the household into subunits and allocating consumption to each subunit proportionally to the income the subunit...

Purpose – The purpose of this paper is to explain the following stylized facts. First, the share of household production in total output has fallen over time as the economy has grown. Second, services as a percent of GDP have risen at the same time. Design/methodology/approach – This paper...

Purpose – The purpose of this paper is to explain the following stylized facts. First, the share of household production in total output has fallen over time as the economy has grown. Second, services as a percent of GDP have risen at the same time. Design/methodology/approach – This paper...