We document trends in higher education costs and tuition over the past 50 years. To explain these trends, we develop and simulate a general equilibrium model with unbalanced technical change. We assume that higher education suffers from Baumol's (1967) service sector disease, in that the...

This paper incorporates home production into a dynamic general equilibrium model of overlapping generations with endogenous retirement to study Social Security reforms. As such, the model differentiates both consumption goods and labor effort according to their respective roles in home...

We incorporate home production in a dynamic stochastic general equilibrium model of household consumption and saving with illiquid housing and endogenous collateralized borrowing constraint. We show that such a model is capable of explaining life-cycle patterns of households' time use and their...

In this paper, we document households' time use and consumption over the life cycle. Specifically, households spend a roughly constant amount of hours doing market work and home production early in the life cycle. At age 50, they begin to reduce their market hours sharply and increase home...