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Computation of Nash-Bargained Models of Household Labour Supply

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  • Barmby, Tim

Abstract

This paper explores a method of recovering the structural parameters of a Nash-bargained model of household labour supply. It proceeds by computing the desired hours of labour supply numerically rather than analytically, thus circumventing the need for analytical tractability. This numerical procedure is then embedded in a conventional maximum-likelihood estimation to obtain estimates of the structural preference parameters. An example using "Family Expenditure Survey" data is reported. Copyright 1996 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Barmby, Tim, 1996. "Computation of Nash-Bargained Models of Household Labour Supply," Bulletin of Economic Research, Wiley Blackwell, vol. 48(2), pages 161-165, April.
    • Handle: RePEc:bla:buecrs:v:48:y:1996:i:2:p:161-65
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    Cited by:

    1. Bargain, Olivier B. & Moreau, Nicolas, 2005. "Cooperative Models in Action: Simulation of a Nash-Bargaining Model of Household Labor Supply with Taxation," IZA Discussion Papers 1480, Institute of Labor Economics (IZA).
    2. Olivier Bargain & Nicolas Moreau, 2013. "The Impact of Tax-Benefit Reforms on Labor Supply in a Simulated Nash-bargaining Framework," Journal of Family and Economic Issues, Springer, vol. 34(1), pages 77-86, March.

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