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Author: N. Gregory Mankiw
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 70
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Book Description
Modern neoclassical theories of the business cycle posit that aggregate fluctuations in consumption and employment are the consequence of dynamic optimizing behavior by economic agents who face no quantity constraint. In this paper, we estimate an explicit model :f this type. In particular, we assume that the observed fluctuations correspond to the decisions of an optimizing representative individual. This individual has a stable utility function which is additively separable over time but not necessarily additively separable in consumption and leisure. We estimate three first order conditions which represent three margins on which the individual is optimizing. He can trade off present consumption for future consumption, present leisure for future leisure and present consumption for present leisure. Our results show that the aggregate U.S. data are extremely reluctant to be characterized by a model of this type. Not only are the overidentifying restrictions statistically rejected but, in addition, the estimated utility function is often not concave. Even when it is concave the estimates imply that either consumption or leisure is an inferior good.
Author: N. Gregory Mankiw
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 70
Get Book Here
Book Description
Modern neoclassical theories of the business cycle posit that aggregate fluctuations in consumption and employment are the consequence of dynamic optimizing behavior by economic agents who face no quantity constraint. In this paper, we estimate an explicit model :f this type. In particular, we assume that the observed fluctuations correspond to the decisions of an optimizing representative individual. This individual has a stable utility function which is additively separable over time but not necessarily additively separable in consumption and leisure. We estimate three first order conditions which represent three margins on which the individual is optimizing. He can trade off present consumption for future consumption, present leisure for future leisure and present consumption for present leisure. Our results show that the aggregate U.S. data are extremely reluctant to be characterized by a model of this type. Not only are the overidentifying restrictions statistically rejected but, in addition, the estimated utility function is often not concave. Even when it is concave the estimates imply that either consumption or leisure is an inferior good.
Author: Peter Kugler
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: David Edward Card
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 64
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Book Description
The lifecycle labor supply model has been proposed as an explanation for various dimensions of labor supply, including movements over the business cycle, changes with age, and within-person variation over time. According to the model, all of these elements are tied together by a combination of intertemporal substitution effects and wealth effects. This paper offers an assessment of the model's ability to explain the main components of labor supply, focusing on microeconomic evidence for men.
Author: Joseph G. Altonji
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 62
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Author: George S. Alogoskoufis
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 40
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Author: Donald H. Dutkowsky
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This study investigates the macro-econometric credibility of the Intertemporal Substitution Hypothesis. It extends the usual formulation by considering money within the representative consumer's life cycle decision. We also provide measures of the real wage rate and asset returns based upon interpretation of the constraint as consumption-saving behavior. Estimation with quarterly U.S. data generates plausible and significant estimates of the structural parameters. The findings indicate elastic labor supply response to the wage rate but mixed results with respect to nominal returns. The estimates are reasonably robust to alternative measures of consumption, money, leisure, and rates of return.
Author: Joseph Altonji
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 96
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Author: Per-Anders Edin
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 32
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Author: Tony S. Wirjanto
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
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Author: George Alogoskoufis
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 32
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Book Description
