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Consumption and labor supply

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  • Jorgenson, Dale W.
  • Slesnick, Daniel T.

Abstract

We present a new econometric model of aggregate demand and labor supply for the United States. We also analyze the allocation full wealth among time periods for households distinguished by a variety of demographic characteristics. The model is estimated using micro-level data from the Consumer Expenditure Surveys supplemented with price information obtained from the Consumer Price Index. An important feature of our approach is that aggregate demands and labor supply can be represented in closed form while accounting for the substantial heterogeneity in behavior that is found in household-level data. As a result, we are able to explain the patterns of aggregate demand and labor supply in the data despite using a parametrically parsimonious specification.

Suggested Citation

  • Jorgenson, Dale W. & Slesnick, Daniel T., 2008. "Consumption and labor supply," Journal of Econometrics, Elsevier, vol. 147(2), pages 326-335, December.
    • Handle: RePEc:eee:econom:v:147:y:2008:i:2:p:326-335
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    1. Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 971-987, December.
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    6. Browning, Martin & Hansen, Lars Peter & Heckman, James J., 1999. "Micro data and general equilibrium models," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 8, pages 543-633, Elsevier.
    7. Slesnick, Daniel T., 2002. "Prices and Regional Variation in Welfare," Journal of Urban Economics, Elsevier, vol. 51(3), pages 446-468, May.
    8. Slesnick,Daniel T., 2001. "Consumption and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521497206.
    9. Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-543, May.
    10. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
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    Cited by:

    1. Constantin ANGHELACHE & Ștefan Virgil IACOB & Dana Luiza GRIGORESCU, 2020. "The analysis of the quarterly evolution of the gross domestic product in 2019," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(622), S), pages 171-182, Spring.
    2. Fullerton Don & Heutel Garth, 2011. "Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(2), pages 1-26, January.
    3. Madalina-Gabriela ANGHEL & Constantin ANGHELACHE & Mirela PANAIT, 2017. "Evolution Of Agricultural Activity In The European Union," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(6), pages 63-74, June.
    4. Madalina-Gabriela ANGHEL & Ana CARP & Marian SFETCU & Stefan Gabriel DUMBRAVA, 2017. "Econometric Model For Analyzing The Influence Of Factors On Final Consumption," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(10), pages 123-131, October.
    5. Jorgenson, Dale W. & Goettle, Richard J. & Ho, Mun S. & Wilcoxen, Peter J., 2013. "Energy, the Environment and US Economic Growth," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 477-552, Elsevier.
    6. Jorgenson, Dale W., 2016. "Econometric general equilibrium modeling," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 436-447.
    7. Jorgenson, Dale W. & Jin, Hui & Slesnick, Daniel T. & Wilcoxen, Peter J., 2013. "An Econometric Approach to General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1133-1212, Elsevier.
    8. Huffman, Wallace E., 2011. "Household Production and the Demand for Food and Other Inputs: U.S. Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-23, December.
    9. Cao, Jing & Ho, Mun S. & Hu, Wenhao & Jorgenson, Dale, 2020. "Estimating flexible consumption functions for urban and rural households in China," China Economic Review, Elsevier, vol. 61(C).
    10. Madalina-Gabriela ANGHEL & Radu STOICA & Tudor SAMSON & Alexandru BADIU, 2017. "Analysis of the Econometric model of the correlation between GDP and final consumption," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(2), pages 122-129, February.
    11. Jing Cao & Mun Sing Ho & Wenhao Hu & Dale Jorgenson, 2021. "Urban household consumption in China: Price, income, and demographic effects," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 810-833, May.
    12. Martina Menon & Federico Perali & Ranjan Ray & Nicola Tommasi, 2019. "The Tale of the Two Italies: Regional Price Parities Accounting for Differences in the Quality of Services," Working Papers 20/2019, University of Verona, Department of Economics.
    13. Hu, Wenhao & Ho, Mun S. & Cao, Jing, 2019. "Energy consumption of urban households in China," China Economic Review, Elsevier, vol. 58(C).
    14. Madalina-Gabriela ANGHEL & Constantin ANGHELACHE, 2017. "Study On Forestry And Fishing In The European Union," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(6), pages 207-212, June.
    15. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Doina BUREA, 2017. "Analysis Of Wage System And Labor Cost In The European Union," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(12), pages 10-16, December.

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