Jennifer L. Gerner

Time Allocation Decisions In Two-Parent Families

Economists have postulated an explicit decision-making rule, the maximization of utility, which is followed in the face of scarce resources. In this paper we formulate a model with which we can empirically test the decision-making hy pothesis of utility maximization. The model also takes into account the simul taneous nature of decisions about time allocation for husband and wife, and purchases of goods and services. The empirical test of the decision-making hy pothesis involves estimating a system of demand equations for household goods and time. Once estimated, the results are examined for conformation with the results implied by the decision-making hypothesis. We find substantial support for the postulated decision-making hypothesis.

The Demand for Service Contracts

The Magnuson-Moss Warranty-Federal Trade Commission Improvement Act of 1975 for the first time explicitly provided the federal government with the legislative authority to regulate warranties on goods and services. The Act provided for the regulation of the form and some of the terms and language used in warranties (Gerner and Bryant 1976; Heaton and Katz 1978; Heaton, Katz, and Adam 1978). The attention paid to warranties, however, has also created interest in substitutes for written warranties, among which is the service contract. While the service contract has been used not as a substitute for a written warranty but rather as an option available on the expiration of the warranty, there is little question that under appropriate conditions manufacturers would offer service contracts in place of warranties. An appliance service contract typically provides repair service, specified maintenance service, preventive checkups, and may provide specified consequential damages. Service contracts have been available for many years on some products. However, their widespread

Contraceptive choice among teenagers: A multivariate analysis

Contraceptive choices made by sexually active teenagers are considered in this study. The idea that teenagers are rational decision-makers who weigh the perceived costs and benefits of specific contraceptive methods along with the option to not contracept guides the analysis. A regression model is estimated using observations of teenage women from the 1982 National Survey of Family Growth. Results generally support the rational decision-making hypothesis. Perceptions of pregnancy risks, resulting from knowledge of reproductive biology and contraceptive options or from a previous pregnancy, appear particularly important in determining contraceptive choices.

Work patterns and marital status change

The impact of marital status changes on the lives of adults and children has increased importance as marriage, divorce, and remarriage have become more frequent patterns of family composition change. These events can often be predicted by the family members involved so that they may be accompanied by changes in labor market activity prior to the events themselves. The study reported here uses panel data to examine the labor market activity changes that precede marital status changes. Women who become divorced increase hours of work in the year or two before the divorce occurs, and women who become remarried decrease hours of work in the year of the remarriage and thereafter. For men there seems to be little change in labor supply during these years. However, hours of housework for men do seem to change.