Gross household product

Gross household product (GHP) is a specific estimation of the economic value added by the unpaid work and capital of households.[1] It does not include many of the additional factors typically included in GPI determinations but focuses specifically on the "household economy". Per Jeremy Greenwood et al., GHP is overlooked by many people and seen as unimportant.[2]

Household productionEdit

Factors that contribute to GHP include healthcare, the environment, government, and community.[3]

MeasurementEdit

The measurement of GHP is dependent on the calculation of unpaid labour and the value of the households assets. There is no official standardized form of measurement and has several ways that it can be measured.

The 'housekeeper wage' approach is the most commonly used. This measurement calculates the value of GHP through determining the cost of paying for household work to be completed.[3]

The ‘specialist wage approach' calculates the cost of hiring a specialist service to perform individual tasks in the household. This can include cooking, laundry and gardening.[3]

A third method of calculating gross household product calculates the opportunity cost of cost of paying. This looks at the monetary value the is sacrificed by working at home, and therefore the GHP figure is determined.[3]

ReferencesEdit

  1. ^ Ironmonger, Duncan; Faye Soupourmas (Aug 2012). "Output-Based Estimates of the Gross Household Product of the United States 2003-2010" (PDF). The International Association for Research in Income and Wealth. Retrieved 17 February 2014. Cite journal requires |journal= (help)
  2. ^ Greenwood, Jeremy; Seshadri, Ananth (September 2004). "Technological Progress and Economic Transformation". NBER Working Paper No. 10765.
  3. ^ a b c d Irongmonger, Duncan (1996). "Counting outputs, capital inputs and caring labor: Estimating gross household product". Feminist Economics. 2 (3): 36–64. doi:10.1080/13545709610001707756.

Further readingEdit