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Quantity rationing and concavity in a flexible household labor supply model

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Author Info

  • Kapteyn, A.J.

    (Tilburg University)

  • Kooreman, P.

    (Tilburg University)

  • Soest, A.H.O. van

    (Tilburg University)

Abstract

In the first part of this paper, the authors derive explicit expressions for the direct utility functions, conditional demand equations, and concavity conditions in both price/income and quantity space for the demand system introduced by Hausman and Ruud (1984). These results are then used in an empirical static family labor supply model, in which kinked budget constraints and unemployment benefits are taken into account for both spouses. Imposition of concavity is necessary for consistent estimation and the concavity constraint appears to be binding. Copyright 1990 by MIT Press.

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-364376.

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Date of creation: 1990
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Publication status: Published in The Review of Economics and Statistics (1990) v.72, p.55-62
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-364376

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Web page: http://www.tilburguniversity.edu/

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  1. McElroy, Marjorie B, 1987. "Additive General Error Models for Production, Cost, and Derived Demand or Share Systems," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(4), pages 737-57, August.
  2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  3. Kooreman, P. & Kapteyn, A.J., 1986. "Estimation of rationed and unrationed household labor supply functions using flexible functional forms," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-364335, Tilburg University.
  4. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  5. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, Elsevier, vol. 13(1), pages 25-42, January.
  6. Ransom, Michael R, 1987. "An Empirical Model of Discrete and Continuous Choice in Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 465-72, August.
  7. Arrufat, Jose Luis & Zabalza, Antonio, 1986. "Female Labor Supply with Taxation, Random Preferences, and Optimization Errors," Econometrica, Econometric Society, Econometric Society, vol. 54(1), pages 47-63, January.
  8. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 42(4), pages 679-94, July.
  9. Van Soest, A. & Kooreman, P. & Kapteyn, A., 1988. "Coherent Specification Of Demand Systems With Corner Solutions And Endogenous Regimes," The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics 302, University of Warwick, Department of Economics.
  10. Jerry A. Hausman, 1980. "The effect of wages, taxes, and fixed costs on women's labor force participation," NBER Chapters, National Bureau of Economic Research, Inc, in: Econometric Studies in Public Finance, pages 161-194 National Bureau of Economic Research, Inc.
  11. Blundell, Richard William & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," CEPR Discussion Papers, C.E.P.R. Discussion Papers 149, C.E.P.R. Discussion Papers.
  12. Blundell, Richard & Meghir, Costas, 1986. "Selection Criteria for a Microeconometric Model of Labour Supply," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 1(1), pages 55-80, January.
  13. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 54(3), pages 679-85, May.
  14. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
  15. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
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