The value of time: a theoretical review

The main models postulated to study the subjective value of non-working time are reviewed, emphasizing the most important aspects behind the microeconomic formulation of time allocation models: others consider the behavioural assumptions, the role of constraints in the maximization process implicit in this task, and the relevant variables in the utility function. The pioneering models are analysed of Becker (1965), De Serpa (1971, 1973) and Evans (1972), who developed a general theoretical framework which may be applied to modal choice models. Train and McFadden's model (1978) is also considered where the formulation incorporates the theory of random utility in order to analyse the choice of individual transport services. This analysis is further developed in Bates and Roberts (1986), Jara-Diaz and Farah (1987), and Jara-Diaz et al (1988), who extend and perfect the analysis to establish what may be considered as the actual position of research on the subject, and to which the most recent contributions of Jara-Diaz (1994) are to be added.