Nonparametric Estimation of Labor Supply Functions Generated by Piece Wise Linear Budget Constraints
The basic idea in this paper is that labor supply can be viewed as a function of the entire budget set, so that one way to account non-parametrically for a nonlinear budget set is to estimate a nonparametric regression where the variable in the regression is the budget set. In the special case of a linear budget constraint, this estimator would be the same as nonparametric regression on wage and nonlabor income. Nonlinear budget sets will in general be charac-terized by many variables. An important part of the estimation method is a procedure to reduce the dimensionality of the regression problem.
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|Date of creation:||1997|
|Date of revision:|
|Contact details of provider:|| Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.|
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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- Agell, S.A. & Meghir, C., 1995. "Male Labour Supply in Sweden : Are Incentives Important?," Papers 12, Uppsala - Working Paper Series.
- Richard Blundell & Alan Duncan & Costas Meghir, 1995.
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IFS Working Papers
W95/07, Institute for Fiscal Studies.
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- Hausman, Jerry A & Newey, Whitney K, 1995.
"Nonparametric Estimation of Exact Consumers Surplus and Deadweight Loss,"
Econometric Society, vol. 63(6), pages 1445-76, November.
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- Blomquist, S.N., 1991. "Flexible Functional Forms and Coherency for Labor Supply Models," Papers 1991j, Uppsala - Working Paper Series.
- Aronsson, Thomas & Palme, Mårten, 1994.
"A Decade of Tax and Benefit Reforms in Sweden - Effects on Labour Supply, Welfare and Inequality,"
SSE/EFI Working Paper Series in Economics and Finance
18, Stockholm School of Economics.
- Aronsson, Thomas & Palme, Marten, 1998. "A Decade of Tax and Benefit Reforms in Sweden: Effects on Labour Supply, Welfare and Inequality," Economica, London School of Economics and Political Science, vol. 65(257), pages 39-67, February.
- Aronsson,T. & Palme,M., 1994. "A Decade of Tax and Benefit Reforms in Sweden -Effects on Labour Supply, Welfare and Inequality," Papers 3, Uppsala - Working Paper Series.
- Andrews, Donald W. K., 1991. "Asymptotic optimality of generalized CL, cross-validation, and generalized cross-validation in regression with heteroskedastic errors," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 359-377, February.
- N. S. Blomquist & U. Hansson-Brusewitz, 1990. "The Effect of Taxes on Male and Female Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 317-357.
- Blomquist, N. Soren, 1983. "The effect of income taxation on the labor supply of married men in Sweden," Journal of Public Economics, Elsevier, vol. 22(2), pages 169-197, November.
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