A Value-Added Approach to Household Production: The Special Case of Meal Preparation

A value-added approach for valuing household production is presented with application to household processing of foods into meals. Data are from the 1977–1978 USDA Household Food Consumption Survey. The cost of input (food) is subtracted from estimates of the value of output (meals) to yield value added within households. This amounts to an estimated 7 percent of the U.S. GNP that is unaccounted for. Value added was negatively associated with female employment. Household size, household income, and age of householder had small but statistically significant positive associations with value added. The mean net value added through meal preparation was $33.82 per week when fuel and capital charges were subtracted.