Macro-group Seminar series: Structural Transformation or Marketization? The Role of Household Production in Consumption

Date: 20 February 2026, 09:50-11:20 

Location: Corvinus University of Budapest, building E, E.3005 

Language of the event: English 

Structural transformation, the shift from goods to services in the economy, is a significant economic change, but its underlying causes remain uncertain. Part of the rise in market services can be attributed to the transition from household production of services to market production, known as marketization. This paper argues that U.S. structural transformation in consumption expenditures is nearly entirely due to marketization. We construct household production in the United States over the period 1929-2023. When we incorporate household production into consumption expenditure, the natural accounting concept when discussing preferences, we find that the share of services remains constant for nearly 100 years. 

There are income effects within services which drive market structural transformation. Low-income consumption is concentrated in home services. Marketization occurs when market services grow with income, not from purchasing home services from the market. 

Everyone is welcome — we would be very happy to see you there! Please note that the talk requires inperson attendance; there will be no online option. 

If you would like to receive updates about future talks in the macroseminar group series, please send an email to eszter.szabobakos@uni-corvinus.hu.