Index

A

ABS. See Australian Bureau of Statistics

Accounting and data foundations, 39–54

demographic data, 52–54

measuring time use, 43–52

overview of the national income and product accounts, 40–43

Accounting approaches, in the current environment, 169–171

Accounts

balance-sheet, 40

expanded set of, 2

experimental, 2–3, 20

income and product, 40–43

input-output, 40

national, 56

satellite, 2–5, 11, 16–18

AFQT. See Armed Forces Qualification Test

Aggregate output, 26

Aggregate production, 69

Aggregate welfare measurement, 156

Amenity value, 31

American Association of Fundraising Counsel, Trust for Philanthropy, 159

American Community Survey, 7, 53

American Time Use Survey (ATUS), 7, 10, 19, 27, 39, 45–52, 71, 76, 88, 100, 126, 140, 147–148, 160

recommendations for, 7, 46–48, 77

Armed Forces Qualification Test (AFQT), 113

Assignment of prices, 28–34

ATUS. See American Time Use Survey

Australia, 45, 76, 122, 154

Australian Bureau of Statistics (ABS), 45

B

Balance-sheet accounts, 40

Bargaining power, 60

BEA. See Bureau of Economic Analysis

Belgium, 154

Benefit-cost analysis, 157

BLS. See Bureau of Labor Statistics

Bookkeeping, implications of double-entry, 24–25

British National Child Development Study, 112

Bureau of Economic Analysis (BEA), 5, 15–16, 19, 21, 26, 43, 77, 94–95, 97, 99, 142–143, 154, 159, 161, 166–167

recommendations for, 59

Bureau of Labor Statistics (BLS), 11, 19, 28, 45–52, 77, 88, 94, 100, 118, 119n, 146, 151, 154

recommendations for, 7, 48–52

Bypass surgery, 131



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Beyond the Market: Designing Nonmarket Accounts for the United States Index A ABS. See Australian Bureau of Statistics Accounting and data foundations, 39–54 demographic data, 52–54 measuring time use, 43–52 overview of the national income and product accounts, 40–43 Accounting approaches, in the current environment, 169–171 Accounts balance-sheet, 40 expanded set of, 2 experimental, 2–3, 20 income and product, 40–43 input-output, 40 national, 56 satellite, 2–5, 11, 16–18 AFQT. See Armed Forces Qualification Test Aggregate output, 26 Aggregate production, 69 Aggregate welfare measurement, 156 Amenity value, 31 American Association of Fundraising Counsel, Trust for Philanthropy, 159 American Community Survey, 7, 53 American Time Use Survey (ATUS), 7, 10, 19, 27, 39, 45–52, 71, 76, 88, 100, 126, 140, 147–148, 160 recommendations for, 7, 46–48, 77 Armed Forces Qualification Test (AFQT), 113 Assignment of prices, 28–34 ATUS. See American Time Use Survey Australia, 45, 76, 122, 154 Australian Bureau of Statistics (ABS), 45 B Balance-sheet accounts, 40 Bargaining power, 60 BEA. See Bureau of Economic Analysis Belgium, 154 Benefit-cost analysis, 157 BLS. See Bureau of Labor Statistics Bookkeeping, implications of double-entry, 24–25 British National Child Development Study, 112 Bureau of Economic Analysis (BEA), 5, 15–16, 19, 21, 26, 43, 77, 94–95, 97, 99, 142–143, 154, 159, 161, 166–167 recommendations for, 59 Bureau of Labor Statistics (BLS), 11, 19, 28, 45–52, 77, 88, 94, 100, 118, 119n, 146, 151, 154 recommendations for, 7, 48–52 Bypass surgery, 131

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Beyond the Market: Designing Nonmarket Accounts for the United States C Cable television, 90 Canada, 45, 76, 80, 154 Capital-market constraints, 24 Capital service flows, 99 Capital stock, 94, 171 Care services, 3 noncompensated, 126 Census Bureau, 7, 28, 53, 94, 102 Centers for Medicare and Medicaid Services, 119 Chain-weighted quantity indexes, 34 Child care, 58, 64, 66, 81, 90, 105 Child Development Supplement of the Panel Study of Income Dynamics, 89 Children commitment to bear and raise, 92 as human capital, family inputs to the development of, 88–90 time use by, 90 Cholesterol intake, 129 CIPSEA. See Confidential Information Protection and Statistical Efficiency Act of 2002 Citizenship, personal habits of, 87 Civility, 87 Classification of goods and services, 25–26 Cleaning services, 19 Cleanliness, 61–62. See also Home cleanliness; Outdoor cleaning Cognitive skills, 115 current, 109 Collective goods, 141 Comparability, across countries, 16 Competitive pressures, 24 Compulsory schooling requirements, 106 Computers, 57, 89 Conceptual framework for the family’s role in the production of human capital, 79–81 for the government and private nonprofit sectors, 143–146 Conceptual framework for education, 94–97 education inputs and outputs, market and nonmarket, 96 Conceptual framework for health, 119–125 broader approach, 122–125 health inputs and outputs of market and nonmarket, 124 market-oriented approaches, 120–122 national health expenditures, 121 Conceptual issues, 5–6, 23–37 assigning prices, 28–34 classifying goods and services, 25–26 counting and valuation issues, 34–36 externalities, 26–27 implications of double-entry bookkeeping, 24–25 marginal and total valuation, 36–37 measuring quantities, 27–28 Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA), 159 Constructed health expenditure accounts, 13 Consumer durables, 72 Consumer Expenditure Survey, 52, 91 Consumer Price Index (CPI), 77, 119n Consumption value, 71 Cost-of-disease approach, treatment-based, 122 Counting issues, 34–36 CPI. See Consumer Price Index CPS. See Current Population Survey Cross-country comparisons, 110 Cross-household variation, 60 Current Population Survey (CPS), 46–48, 51, 53, 126, 146–147, 160 D Data needs, 6–8 for future environmental directions, 174–175 in the government and private nonprofitsectors, 159–160 in health, 140 Data needs in home production, 76–78 input quantities and prices (time use), 76–77 output quantities and prices, 77–78 Day care, 83 Death, causes of, 124 Degradation, valuing, 169 Demographic data, 7, 27–28, 52–54, 130–131 recommendations for, 7–8, 53–54 Department of Agriculture, 91 Department of Commerce, 19 Department of Defense, 145 Department of Health and Human Services, 136 Centers for Medicare and Medicaid Services, 119, 136n National Health Accounts, 120 Department of Labor, 19

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Beyond the Market: Designing Nonmarket Accounts for the United States Depreciation, of natural resources, 165, 167 Development of children’s human capital, family inputs to, 88–90 Developmental psychology, 82 Direct quantity-based index, 118 Disamenity costs, 116n Discrete choice model, 177 Disease-adjusted life years, 136 “Disease state” approach, 3, 134 Divorce rates, 79 Donated goods in the government and private nonprofit sectors, 153 recommendations for, 146 Double-entry bookkeeping, 6, 26, 76, 161 implications of, 24–25 Down’s syndrome, 90 Drinking, 129 Drugs, new, 118, 120 DVD players, 90 E Early Child Care Research Network, 83 Earnings, education’s link to higher, 106 Econometrics, 132 Economic inequality, 13 Economic production, 1 Economic theory, 29 Economically valued nonmarket factors, 10 Education, 3, 80, 93–116 conceptual framework for, 94–97 inputs and outputs, market and nonmarket, 96 link to higher earnings, 106 measuring and valuing inputs in, 97–105 measuring and valuing output in, 105–116 Education satellite account, recommendations for, 97 Educational psychology, 84 Educational satellite accounts, 93 Empathy, 87 ENRAP. See Environmental and Natural Resources Accounting Project Environment, 4, 130, 163–177 current accounting approaches, 164, 169–171 definition and scope of coverage, 164–169 future directions, 171–175 the social environment, 175–177 Environmental and Natural Resources Accounting Project (ENRAP), 170, 172–173 Environmental Protection Agency (EPA), 164, 172–173 Environmental resources, renewable, in defining environment, 167–169 Estimation approaches and practice, in future environmental directions, 171–173 Ethical conduct, value of, 87 Euroqual-5D (five domains), 136 Eurostat, 56 Handbook, 121 Experimental methods, 2–3, 20 Externalities, 26–27 F “Family disintegration,” 18 Family role in the production of human capital, 4, 79–92 conceptual framework, 79–81 defining human capital, 81–83 family inputs to the development of children’s human capital, 88–90 the human capital production function, 83–88 valuing the time parents devote to children, 91–92 Federal efforts, 97 recommendations for, 164 Federal Trade Commission, 55 501(c)(3) organizations, 142, 145 501(c)(4) organizations, 142–143, 145 Food preparation, 89 Form 990, 159 Form 990T, 159 Fourth World Conference on Women, 44 “Free-rider” behavior, 157 Full capital service flow, 99 Future directions in environmental accounting, 171–175 data needs, 174–175 estimation approaches and practice, 171–173 linkage with other nonmarket accounting efforts, 173–174

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Beyond the Market: Designing Nonmarket Accounts for the United States G GAAP. See Generally accepted accounting principles Gardeners, 72 GDI. See Gross domestic income GDP. See Gross domestic product General Accounting Office, 153 General Social Survey (Canada), 45 Generalist approach, 102 Generally accepted accounting principles (GAAP), 158, 161 Genetic differences, 84 Giving and Volunteering Survey, 146 Goods and services, classification of, 25–26 Government inputs and market inputs, 97–99 recommendations for, 145 Government satellite accounts, 161 Government sector, 4, 141–162 conceptual framework, 143–146 data requirements, 159–160 donated goods, 153 measuring and valuing output in, 153–159 volunteer labor, 146–152 Grand Canyon, 34, 130 Grants-in-aid, 97 Great Depression, 14 Griliches, Zvi, 54, 153 Gross domestic income (GDI), 40–43 Gross domestic product (GDP), 1–2, 12, 16, 19, 23, 34, 40–44, 56–58, 62, 73–74, 93, 97–99, 120–121, 143, 154, 166 finding a replacement for, 16 Gross investment, 41 Grossman, Michael, 124 H Handbook of National Accounting: Integrated Environmental and Economic Accounting, 163 Handbook on Nonprofit Institutions in the System of National Accounts, 121, 144, 150, 155 Head Start, 84 Health, 3–4, 117–140 adverse shocks to, 132 changes in, 125 conceptual framework for, 119–125 data requirements, 140 improvements in, 123 inputs and outputs of market and nonmarket, 124 measuring and valuing, 131–140 measuring and valuing inputs in, 125–131 valuing increments of, 137–140 Health and Labor Questionnaire, 136n Health capital, producing, 86 Health-impairment approach, 134 Health research expenditures, as a percentage of GDP, 121 Health satellite accounts, 125 recommendations for, 118, 131 Health status, measuring, 133–137 Healthy activities, recommendations for, 128 Hedonic models, 114, 118, 174, 176–177 High School and Beyond Survey, 112 Home cleanliness, production function for, 61 Home-produced meals, in a household production account, stylized account for, 60 Home production, 3, 55–78 data requirements, 76–78 factory analogy, 59–62 measuring and valuing output of, 74–76 measuring inputs in, 63–68 valuing inputs of, 68–73 Home production data needs, 76–78 input quantities and prices (time use), 76–77 output quantities and prices, 77–78 Home schooling, 64 Household as a factory, 59–62 production function for home cleanliness, 61 stylized account for home-produced meals in a household production account, 60 Household members’ wage rates, in valuing inputs of home production, 69–70 Household production account home-produced meals in, 60 recommendations for, 64, 74–76 Household technology, 60–61 Housing prices, 114 Housing value approach, to measuring and valuing output in education, 113–116 Human capital acquiring, 114 defining, 81–83 family inputs to the development of children’s, 4, 88–90 investment in, 10, 21, 81 production function of, 83–88

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Beyond the Market: Designing Nonmarket Accounts for the United States I IALS. See International Adult Literacy Survey IALS prose scores, 110 IEESA, 166–167, 171 Immigration policies, 80 “Incentive-enhancing” preferences, 82 Income accounts national, 40–43 overview of national, 40–43 Incremental earnings approach to measuring and valuing output in education, 111–113 Increments of health, valuing, 137–140 Independent Sector, 146 Index-number theorists, 34 Indexes chain-weighted quantity, 34 direct quantity-based, 118 price-deflated quantity, 118 quality-of-life, 132, 176 Indicator approach to measuring and valuing output, 107–111 IALS prose scores, 110 NAEP mathematics scores, 109 NAEP reading scores, 108 Infants, viewed as outputs, 80 Infectious diseases, 123 Input-output accounts, 40 Inputs in education, measuring and valuing, 97–105 in health, measuring and valuing, 125–131 in home production, measuring, 63–68 of home production, valuing, 68–73 quantities and prices (time use) for home production data requirements, 76–77 Internal Revenue Code, 143, 145 International Adult Literacy Survey (IALS), 110, 114–115 Internet, 57 Investment, 94, 101, 111 Investments families make, in preparing children for the future, 4–5 IRS Form 990, 158–159 Italy, 154 J Journal of Economic Perspectives, 157n K “Knowledge sector,” 120 Kuznets, Simon, 1, 9, 55 L Labor supply, 139 Laissez faire societies, 168 Laundry example, 75, 77 Leisure, 19, 61 Leontief system, 170 M Marginal valuation, and total valuation, 36–37 Marital matching, idiosyncrasies inherent in, 51 Market and nonmarket factors, in defining environment, 165–166 Market-based production technology, 59 Market inputs, and government inputs, 97–99 Market-oriented approaches, to health, 120–122 Market prices, 155–156 Market service providers, 31 Market substitutes, price of, in valuing inputs of home production, 68–69 Maternal employment, 89 Meal preparation, 29 Measure of Economic and Social Performance project (MESP), 173 Measurement objectives, 17–19 Measuring and valuing health, 131–140 defining the output, 131–133 measuring health status, 133–137 valuing increments of health, 137–140 Measuring and valuing inputs in education, 97–105 market and government inputs, 97–99 national education expenses, 97–98 nonmarket time inputs, 100–105 Measuring and valuing inputs in health, 125–131 Measuring and valuing output in education, 105–116 housing value approach, 113–116 incremental earnings approach, 111–113 indicator approach, 107–111 Measuring and valuing output in government and private nonprofit sectors, 153–159 value imputations, 158–159 zero price problem, 155–158

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Beyond the Market: Designing Nonmarket Accounts for the United States Measuring and valuing output of home production, 74–76 Measuring health status, 133–137 Measuring inputs in home production, 63–68 time spent in home production, 65, 67 Measuring quantities, 27–28 Measuring time use, 43–52 American Time Use Survey, 45–52 previous collections of time-use data, 44–45 problems and nonproblems with ATUS, 48–52 Medical care, 3, 22, 80, 118, 123 as a percentage of GDP, 121 Medicare program, 43 Medicine, discoveries in, 13 MESP. See Measure of Economic and Social Performance project Microwave ovens, 57 Mill, John Stuart, 93 Monetary values, 35 Motivation, 12–14 Mozambique, 155 Multinational Time Use Survey, 89 N NAMEA system, 170 National accounts, 56 National Assessment of Educational Progress (NAEP), 108–110, 114–115 mathematics scores, 109 reading scores, 108 National Bureau of Economic Research (NBER), 55, 173 National Center for Charitable Statistics, 159 National Center for Education Statistics (NCES), 52–53, 94, 97 National Center for Health Statistics (NCHS), 28, 122 National Education Association, 94 National education expenditures, 97–98 National health accounts, 120, 136n, 140 National Health and Nutrition Examination Survey (NHANES), 140 National health expenditures, 121 National Health Interview Survey, 140 National Health Interview Survey on Disability, 126 National income accountants, 75 National income and product accounts (NIPAs), 1–2, 5, 9–12, 16–17, 20–27, 39–43, 54–55, 63, 73, 78, 94, 117–122, 133, 142–148, 153, 156, 162, 166, 168–169, 172, 176 gross domestic product and gross domestic income, 41 imputations in, 42 scope of coverage in, 14–16 National income trends, 149 National Institute of Child Health and Human Development, Early Child Care Research Network, 83 National Institutes of Health, 157 National Longitudinal Survey of Youth, 113 National monuments, 34 National Research Council, 35, 119n National Science Foundation, 66, 157, 173 National well being, 16 Natural resource depreciation, 165, 167 Nature’s Numbers, 4, 130, 163–164, 167, 171–175 NBER. See National Bureau of Economic Research NCES. See National Center for Education Statistics NCHS. See National Center for Health Statistics “Near-market” activities, 18 Netherlands, 122, 155, 170 Netting-out rule, 129 New drugs, 118, 120 New Nonprofit Almanac, 142 NHANES. See National Health and Nutrition Examination Survey NIPAs. See National income and product accounts Noncompensated care services, 126 Nonlabor inputs, inputs of home production, valuing, 73 Nonmarket accounting priorities, 19–23 linkage in future environmental directions, 173–174 Nonmarket factors, 2, 5–6, 10, 13, 35. See also Market and nonmarket factors development of, 12 production, 21, 32 recommendations for, 35, 37 in service-oriented areas, 8 Nonmarket satellite accounts, recommendations for, 23

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Beyond the Market: Designing Nonmarket Accounts for the United States Nonmarket time inputs, 100–105 time estimates, 100 time valuations, 101–105 Nonmedical technology, 3 Nonprofit economic activity, 11 recommendations for, 145 Nonprofit organizations, 141–144 Nordhaus, William, 18 Nutrition, 123 O OECD. See Organisation for Economic Co-operation and Development Office for National Statistics (United Kingdom), 45, 56, 81 “On call” schedules, 88 Opportunity-cost-based approach, 6, 30, 102 Opportunity costs calculating, 32 non-negative, 103 Organisation for Economic Co-operation and Development (OECD), 63n, 154 Aging-Related Diseases Study, 122 Out-of-pocket expenditures, 88 Outdoor cleaning, example of valuing inputs of home production, 72–73 Output in education measuring and valuing, 105–116 recommendations for, 116 Output in government and private nonprofit sectors, measuring and valuing, 153–159 Output in measuring and valuing health, defining, 131–133 Output of home production, measuring and valuing, 74–76 Output quantities and prices, for home production data requirements, 77–78 Own-time inputs, 128 Owner-occupied housing, rental value of, 15 Ownership, 165 P Paid caregivers, 91 Panel Study of Income Dynamics (PSID), 91 Child Development Supplement, 89 Panel to Study the Design of Nonmarket Accounts, 2, 10 Parenting, 85, 102 Personal Consumption Expenditure report, 77 Personal responsibility, 82, 87 Philippines, 155, 170, 172–173 Physical capital stock, 10 Pigou, A.C., 14 Policy, 124, 168 Policy makers, 1 Pollution, 28, 130, 164–167, 172, 175 Poverty lines, 13 Price-deflated quantity index, 118 Price indexes, 27 Prices assignment of, 28–34 of market substitutes, in valuing inputs of home production, 68–69 Private nonprofit sector, 4, 141–162 conceptual framework, 143–146 data requirements, 159–160 donated goods, 153 measuring and valuing output in, 153–159 volunteer labor, 146–152 Pro bono legal services, 147, 149–150 “Pro-social” preferences, 82 Product accounts national, 40–43 overview of national, 40–43 Productive capacity, 82 Productivity economic, 1 estimating, 94 for home cleanliness, 61 in medical care, 117, 119 trends in, 115 Productivity-equivalent replacement wage, 102–103 PSID. See Panel Study of Income Dynamics Public Broadcasting System, 155 Public goods, 141 Public policy, 79 Publication schedule, appropriate, 22 Q QALYs. See Quality-adjusted life years Quality-adjusted life-expectancy, 132 Quality-adjusted life years (QALYs), 124, 136 Quality-adjusted replacement cost, an alternative approach to valuing inputs of home production, 70–71 Quality-of-life indexes, 132, 176 Quantities, measuring, 27–28

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Beyond the Market: Designing Nonmarket Accounts for the United States Quantity-based index, direct, 118 QWB (quality of well-being) survey, 136 R Rawl’s veil of ignorance, 139 Recommendations for the American Time Use Survey, 7, 46–48, 77 for the Bureau of Economic Analysis (BEA), 59 for the Bureau of Labor Statistics, 7, 48–52 for demographic data, 7–8, 53–54 for donated goods, 146 for an education satellite account, 97 for federal efforts, 164 for government inputs, 145 for health satellite accounts, 118, 131 for healthy activities, 128 for a household production account, 64, 74–76 for nonmarket satellite accounts, 23 for nonprofit economic activity, 145 for output in education, 116 for a replacement cost measure, 6, 32 for satellite accounts for household production, 73 for statistical agencies, 4 for time inputs, 68, 71 for time inputs to education, 103–105 for time use patterns, 100 for unpaid time, 127 for volunteer labor, 152 Regression discontinuity approach, 115 Reid, Margaret, 63 Religious organizations, 87, 143 Renewable environmental resources, in defining environment, 167–169 Replacement cost approach, recommendations for, 6, 32 Replacement wages, productivity-equivalent, 102–103 Research and development (R&D), 3, 130 Roofing example, 127 S Safety devices, 3 Satellite accounts, 2–5, 11, 16–18 for education, 93 for government, 161 for health, 125 for household production, recommendations for, 73 nonmarket, 23 School expenditures, 13 Scientific inventions, 13 Scope of coverage in the NIPAs, 14–16 SEEA. See System of integrated environmental and economic accounting Self-maintenance, 112 Self-selection, 138 “Sentinel capabilities,” 84 Services. See Goods and services Sex act, 63–64 SF-36 questionnaire, 136 Shadow wages, 160 Sleep, 63–64, 112, 128–129 Smith, Adam, 93 Smoking, 129 SNA. See System of National Accounts Social capital, 21, 34 Social scientists, encouraging in study of nonmarket activities, 10 Social welfare, contributions to, 1 “Soft skills,” 82 South Africa, 155 Specialist approach, 102 Staged approach, 2 Standardized tests, 114 2003 Statistical Abstract, 13 Statistical agencies, recommendations for, 4 Statistics Canada, 88 Subsoil resources, in defining environment, 166–167 Sweden, 110, 155 Symptoms, grading, 136 System of integrated environmental and economic accounting (SEEA), 163, 170–171 System of National Accounts (SNA), 14, 17, 63n, 144, 151, 154, 169–171 T Technical changes, 13, 57 Technology, 25, 29 household, 60–61 nonmedical, 130 Test scores, 107, 109, 113–115 Time diary, 46 Time estimates, 100

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Beyond the Market: Designing Nonmarket Accounts for the United States Time inputs, 4, 6–7, 14, 30 market value of, 31 recommendations for, 68, 71 Time inputs to education recommendations for, 103–105 value of, 104 Time parents devote to children, valuing, 91–92 Time spent in home production, 65, 67 Time use by children, 90 measuring, 43–52 patterns of, recommendations for, 100 Time-use data, 39, 88 previous collections of, 44–45 Time valuations, 101–105 Tobin, James, 18 Total valuation, and marginal valuation, 36–37 Transaction costs, 31, 60 Travel-cost method, 172, 174 Treatment-based cost-of-disease approach, 122 Trends historical, 13 in national income, 149 in productivity, 115 Trust for Philanthropy, 159 U United Kingdom, 45, 56, 76, 81, 110, 122 United Nations, 14, 163 University of Essex, Multinational Time Use Survey, 89 University of Maryland, 44, 66 University of Michigan, 44, 50 Unpaid time, 11 recommendations for, 127 Unpriced labor time, 148 Urban Institute, 146 National Center for Charitable Statistics, 159 Utility-based measures, 135 V Valuation issues, 34–36 Value imputations of, 158–159 of life, 177 of time inputs to education, 104 Valuing increments of health, 137–140 Valuing inputs of home production, 68–73 example of outdoor cleaning, 72–73 household members’ wage rates, 69–70 price of market substitutes, 68–69 quality-adjusted replacement cost (alternative approach), 70–71 valuing nonlabor inputs, 73 Valuing the time parents devote to children, 91–92 Vocational students, 114 Volunteer labor, 4, 96, 126, 144 in the government and private nonprofit sectors, 146–152 recommendations for, 152 W Wage employment, women’s participation in, 58 Wage rates, 82 for household members, in valuing inputs of home production, 69–70 marginal, 30 shadow, 160 Walker, Francis, 55 Welfare lines, 13 Willingness-to-pay estimates, 174 Work Limitation Questionnaire, 136n Work Productivity and Activity Impairment Questionnaire, 136n World Wars, disruptions attributable to, 14 Y YHL (years of healthy life expectancy), 136 Youth sports organization, 33 Z Zero price problem, 155–158

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