Description
Approach to the analysis of the household in which the latter is depicted as combining the time of household members with market goods to produce the outputs or commodities it ultimately desires.
Additional notes and information
It ignores the internal organisation and structure of families and households because, in the context of pure neoclassical theory, and analogously to the treatment of firms, the theory assumes a costless and efficient operation. Its subject matter includes not only the market behaviour of the household (supply of labour, demand for goods), but also such phenomena as marriage, fertility, the education of children, and the allocation of time.
Sources
Alexander, P., and Baden, S. (2000). Glossary on Macroeconomics from a Gender Perspective. Bridge Institute of Development Studies. Available at:
http://www.iiav.nl/epublications/2000/glossary_on_macroeconomics.pdf