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Alternative approaches to discrete working time choice in an AGE framework

  • Arntz, Melanie
  • Boeters, Stefan
  • Gurtzgen, Nicole

We compare two options of integrating discrete working time choice of heterogenous households into a general equilibrium model. The first, known from the literature, produces household heterogeneity through a working time preference parameter. We contrast this with a model that directly incorporates a logit discrete-choice approach into a AGE framework. On the grounds of both calibration consistency and adequate accomodation of within-household interaction, we argue that the logit approach is preferable.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 23 (2006)
Issue (Month): 6 (December)
Pages: 1008-1032

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Handle: RePEc:eee:ecmode:v:23:y:2006:i:6:p:1008-1032
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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