The Effect of the Value of Time on Food Consumption Patterns in Developing Countries: Evidence from Sri Lanka

This study shows that the opportunity cost of women's time can affect household food consumption patterns in developing countries. Demand equations for rice, bread, and the ratio of bread to total cereal consumption are estimated for urban Sri Lankan households. The demand specification, which is based on the “New Household Economics,” includes as explanatory variables the woman's estimated market wage and the household's “full income,” and alternatively “observed income.” Wages are estimated using the Heckman procedure to correct for sample selection bias.