Labor-leisure choice : is everything as straightforward as one might have thought?
Data(s) |
01/08/2016
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Resumo |
We argue that a full understanding of a rational labor supply choice in a standard dynamic life cycle framework is obscure, despite the framework’s being seemingly self-explanatory, straightforward, and intuitively sensible. In a completely friction-free environment, we, to our knowledge, are the first to provide a complete analytic solution to the benchmark model that presumes a kind of labor supply behavior that is typically taken as the standard in economic studies. We find thatsuch standard behavior holds only for a narrow set of parameters. For many alternative parameterizations, the labor supply behavior of a rational agent is either highly unrealistic, or extremely hard to predict and interpret. A complete understanding of a rational, intertemporal labor supply choice requires further analysis. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Scientific Research Publishing |
Relação |
http://dro.deakin.edu.au/eserv/DU:30088606/tang-laborleisure-2016.pdf http://www.scirp.org/journal/PaperInformation.aspx?PaperID=69665 |
Direitos |
2016, by authors and Scientific Research Publishing Inc. |
Palavras-Chave | #Life-Cycle Consumption and Labor Supply, #Constrained Optimal Control |
Tipo |
Journal Article |