SUBSTITUTION BETWEEN GOODS AND LEISURE IN A DEVELOPING-COUNTRY

The paper explores the substitutability between goods, female leisure, and male leisure. We find that goods and leisure are not separable. We then adapt the Almost Ideal Demand System (AIDS) to include leisure in the system in the same manner as commodities. The model is not sensitive to variations in the assumption of total time available for each individual's work and leisure. Results from Sri Lanka indicate the marginal propensity to consume leisure is quite high, especially in rural areas. This finding has important implications for transfer programs designed to raise food consumption. A somewhat surprising complementarity between male and female leisure was also observed. A number of goods were found to be complements to both male and female leisure.