On Intertemporal Substitution and Aggregate Labor Supply
AbstractIn this paper, the author presents an econometric investigation of t he implications of the intertemporal substitution hypothesis for aggregate employment in the United States. The tests are based on a version of the hypothesis with time-separable preferences. On the basis of the evidence produced, the hypothesis is quite successful in explaining fluctuations in aggregate employment, although almost totally unsuccessful in accounting for fluctuations in employee hours. These findings suggest that the hypothesis might have an important role to play in macroeconomic modeling, although they contradict attempts to account for aggregate fluctuations solely in terms of continuous competitive equilibrium in labor markets. Copyright 1987 by University of Chicago Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Political Economy.
Volume (Year): 95 (1987)
Issue (Month): 5 (October)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JPE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Faria, Joao Ricardo & Leon-Ledesma, Miguel A., 2005. "Real exchange rate and employment performance in an open economy," Research in Economics, Elsevier, vol. 59(1), pages 67-80, March.
- David Domeij & Martin Floden, 2006.
"The Labor-Supply Elasticity and Borrowing Constraints: Why Estimates are Biased,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 9(2), pages 242-262, April.
- Domeij, David & Floden, Martin, 2001. "The labor-supply elasticity and borrowing constraints: Why estimates are biased," Working Paper Series in Economics and Finance 480, Stockholm School of Economics.
- Dr. Belkacem Laabas , Dr. Weshah Razzak, .
"Taxes, Natural Resource Endowment, and the Supply of Labor: New Evidence,"
API-Working Paper Series
1005, Arab Planning Institute - Kuwait, Information Center.
- Razzak, Weshah & Labas, Belkacem, 2010. "Taxes, Natural Resource Endowment, and the Supply of Labor: New Evidence," MPRA Paper 21634, University Library of Munich, Germany.
- John Creedy & Alan Duncan, 2001.
"Aggregating Labour Supply And Feedback Effects In Microsimulation,"
Department of Economics - Working Papers Series
823, The University of Melbourne.
- John Creedy & Alan Duncan, 2005. "Aggregating Labour Supply and Feedback Effects in Microsimulation," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(3), pages 277-290, September.
- John Creedy & Alan Duncan, 2001. "Aggregating Labour Supply and Feedback Effects in Microsimulation," Melbourne Institute Working Paper Series wp2001n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- John Creedy & Alan Duncan, 2001. "Aggregating labour supply and feedback effects in microsimulation," IFS Working Papers W01/24, Institute for Fiscal Studies.
- Wen, Yi, 1998. "Can a real business cycle model pass the Watson test?," Journal of Monetary Economics, Elsevier, vol. 42(1), pages 185-203, June.
- H. Osano & T. Inoue, 1988. "Testing Between Competing Models of Business Cycles: The Efficient Long-Term Contract Hypothesis Versus the Intertemporal Substitution Hypothesis," Discussion Papers 768, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- University of Siena & Riccardo Fiorito, 2008.
"Labor Supply Elasticities: Can Micro Be Misleading for Macro?,"
2008 Meeting Papers
902, Society for Economic Dynamics.
- Riccardo Fiorito & Giulio Zanella, . "Labor Supply Elasticities: Can Micro be Misleading for Macro?," Working Papers 4, Department of the Treasury, Ministry of the Economy and of Finance.
- Riccardo Fiorito & Giulio Zanella, 2008. "Labor Supply Elasticities: Can Micro Be Misleading for Macro?," Department of Economics University of Siena 547, Department of Economics, University of Siena.
- João Ricardo Faria & Miguel León-Ledesma, 2000. "The Intertemporal Substitution Model of Labor Supply in an Open Economy," Studies in Economics 0009, Department of Economics, University of Kent.
- Riccardo Fiorito & Giulio Zanella, 2012.
"The Anatomy of the Aggregate Labor Supply Elasticity,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 171-187, April.
- Riccardo Fiorito & Giulio Zanella, 2011. "Code and data files for "The Anatomy of the Aggregate Labor Supply Elasticity"," Computer Codes 09-180, Review of Economic Dynamics.
- Jang-Ok Cho & Merrigan, Philip & Phaneuf, Louis, 1998. "Weekly employee hours, weeks worked and intertemporal substitution," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 185-199, February.
- Ali Dib & Louis Phaneuf, 2005. "Intertemporal Substitution in Macroeconomics: Evidence from a Two-Dimensional Labour Supply Model with Money," Working Papers 05-30, Bank of Canada.
- Tatsuji Hayakawa & Paul Zak, 2002. "Debt, Death and Taxes," International Tax and Public Finance, Springer, vol. 9(2), pages 157-173, March.
- Daehaeng Kim & Chul-In Lee, 2007. "On-the-Job Human Capital Accumulation in a Real Business Cycle Model: Implications for Intertemporal Substitution Elasticity and Labor Hoarding," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 494-518, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.