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Alternative Approaches to Discrete Working Time Choice in an AGE Framework

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  • Arntz, Melanie
  • Boeters, Stefan
  • Gürtzgen, Nicole

Abstract

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.

Suggested Citation

  • Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole, 2005. "Alternative Approaches to Discrete Working Time Choice in an AGE Framework," ZEW Discussion Papers 05-62, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:4545
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    Cited by:

    1. Stefan Boeters & Michael Feil, 2009. "Heterogeneous Labour Markets in a Microsimulation–AGE Model: Application to Welfare Reform in Germany," Computational Economics, Springer;Society for Computational Economics, vol. 33(4), pages 305-335, May.
    2. Melanie Arntz, 2010. "What Attracts Human Capital? Understanding the Skill Composition of Interregional Job Matches in Germany," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 423-441.
    3. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2008. "Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation," Economic Modelling, Elsevier, vol. 25(3), pages 422-439, May.
    4. Clauss, Markus & Schubert, Stefanie, 2009. "The ZEW combined microsimulation-CGE model: innovative tool for applied policy analysis," ZEW Discussion Papers 09-062, ZEW - Leibniz Centre for European Economic Research.
    5. Andreas Peichl, 2009. "The Benefits and Problems of Linking Micro and Macro Models — Evidence from a Flat Tax Analysis," Journal of Applied Economics, Taylor & Francis Journals, vol. 12(2), pages 301-329, November.
    6. Andreas PEICHL, 2008. "The Benefits of Linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," EcoMod2008 23800106, EcoMod.
    7. Magnani, Riccardo & Mercenier, Jean, 2009. "On linking microsimulation and computable general equilibrium models using exact aggregation of heterogeneous discrete-choice making agents," Economic Modelling, Elsevier, vol. 26(3), pages 560-570, May.
    8. Alho, Kari O. E., 2006. "Labour Market Institutions and the Effectiveness of Tax and Benefit Policies in Enchancing Employment: A General Equilibrium Analysis," Discussion Papers 1008, The Research Institute of the Finnish Economy.
    9. Melanie Arntz & Stefan Boeters & Nicole Gürtzgen & Stefanie Schubert, 2006. "Analysing Welfare Reform in a Microsimulation-AGE Model," Computing in Economics and Finance 2006 109, Society for Computational Economics.
    10. Xiao-guang Zhang, 2017. "Solving a Partial Equilibrium Model in a CGE Framework: The Case of a Behavioural Microsimulation Model," International Journal of Microsimulation, International Microsimulation Association, vol. 10(3), pages 27-58.

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    More about this item

    Keywords

    applied general equilibrium; discrete working time choice; labour market; wage bargaining; labour market reform; logit model;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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