Does working at home make you more productive? Yes (with data)!
blog.rescuetime.com
blog.rescuetime.com
The biggest drawback is missing the fun of 'white board time' but adequate time on the telephone (or Skype for video) helps.
The advantages mostly involve being able to schedule work time for when you are feeling (and being) most productive. The ability to take a break (even if it is only doing 20 minutes of yard work, running an errand, playing a musical instrument for a few minutes, talk with family and neighbors) is often just the thing to later help get into a good work flow.
Working at home might make the Rescue Time team more productive, but it definitely isn't true for me, and probably many others.
Come work at my house, guys ... my kids show you what distracting is all about
I worked at home when my kids were born, and I solved the problem by having a separate office with a door. When the door is closed, I am "not home".
But then the trade off is when you do take breaks, you visit with them multiple times per day. Also, there were times that we would put a blanket on the floor in my office and the kids would nap there.
Despite productivity benefits, the major drawback of working remotely is a lack of social interaction beyond telephone/e-mail/im, which can be very taxing emotionally because physical cues are hugely important to communication.
I think to make telecommuting really work, one would need to get a good understanding of the intangibles involved. An antipattern of telecommuting would be spending more time in meetings during the days in the office, to "catch up", communicate or whatever. Rather, one would need to somehow make the people working from home feel like they are socially part of the working environment. Maybe having some kind of non-meeting social settings during office days would work. Perhaps a long lunch or dinner or something?
I would be working better if I didn't have talk of reality shows forced into my brain when I am trying to concentrate.