An Econometric Study of Hours and Output Variation with Preference Shocks
This paper investigates preference shocks, which may be interpreted as deriving from shocks to household production or changes in relative prices, as a mechanism for generating hours variation within a one-sector stochastic optimal growth model without intertemporal substitution or indivisibilities. Maximum likelihood estimates of the preference parameters are presented, along with statistics summarizing simulation of the estimated model. Comparison with postwar U.S. data shows that this model generates sufficient variation in hours relative to productivity, and in consumption relative to output, as well as predicting a negative correlation between hours and productivity. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Volume (Year): 33 (1992)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: |
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:33:y:1992:i:2:p:449-71. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or ()
If references are entirely missing, you can add them using this form.