Journal ArticleDOI
Estimates of the Frisch Elasticity of Labor Supply: A Review
TLDR
The authors assesses the literature on the responsiveness of the supply of labor in the case of a temporary change in after-tax compensation and find that the estimates of the Frisch elasticity most relevant for fiscal policy analysis range from 0.27 to 0.53 (with a central estimate of 0.40).Abstract:
This article assesses the literature on the responsiveness of the supply of labor in the case of a temporary change in after-tax compensation. In particular, it reviews the literature on the Frisch elasticity — the sum of the substitution elasticity and a measure of people’s willingness to trade work for consumption over time. The authors find that the estimates of the Frisch elasticity most relevant for fiscal policy analysis range from 0.27 to 0.53 (with a central estimate of 0.40). Using that range, they illustrate how different Frisch elasticities affect the responsiveness of labor supply to changes in fiscal policies. The illustration shows that estimation of the Frisch elasticity can have a significant influence on analyses of the economic effects of such policy changes.read more
Citations
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Journal ArticleDOI
Female Market Work, Tax Regimes, and the Rise of the Service Sector
TL;DR: In this article, the effects of tax structures (levels, progressivity, dual earning households) on female employment and, consequently, the rising service sector were studied, showing that the size of the service economy and female employment are positively correlated, and partially determined by different tax regimes.
Journal ArticleDOI
Female market work, tax regimes, and the rise of the service sector
TL;DR: In this paper, a multi-sector model was developed to quantify the effect of different tax regimes in incentivizing women to enter the labor force and estimate the feedback effect from women entering the workforce on the service sector size.
Posted Content
Faraway, so close! technology diffusion and firm heterogeneity in the medium term cycle of advanced economies (Updated May 2019)
TL;DR: This article developed a two-country model of endogenous growth in varieties, cross-country firm heterogeneity and trade to match this evidence, and showed that large US firms, by diffusing embodied technology through trade in intermediates, appear to drive Europe's output over the medium term.
Journal ArticleDOI
Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany
TL;DR: In this paper , the authors provide an approach to incorporate planned investments in power grid infrastructure in Germany, which are expected to offer the necessary flexibility to integrate large shares of variable renewable energy sources into the power system, into a dynamic stochastic equilibrium model.
References
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Journal ArticleDOI
Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach
TL;DR: Using a Bayesian likelihood approach, the authors estimate a dynamic stochastic general equilibrium model for the US economy using seven macroeconomic time series, incorporating many types of real and nominal frictions and seven types of structural shocks.
Journal ArticleDOI
Shocks and frictions in US business cycles: A Bayesian DSGE approach
Frank Smets,Rafael Wouters +1 more
TL;DR: In this paper, a dynamic stochastic general equilibrium (DSGE) model for the US economy is proposed, which incorporates many types of real and nominal frictions: sticky nominal price and wage setting, habit formation in consumption, investment adjustment costs, variable capital utilisation and fixed costs in production.
ReportDOI
Resuscitating Real Business Cycles
TL;DR: In this paper, the authors show that large technology shocks are needed to produce realistic business cycles, while Solow residuals are sufficiently volatile, these imply frequent technological regress, suggesting the imminent demise of real business cycles.
Posted Content
Resuscitating real business cycles
Robert G. King,Sergio Rebelo +1 more
TL;DR: In this paper, the authors show that large technology shocks are needed to produce realistic business cycles, while Solow residuals are sufficiently volatile, these imply frequent technological regress, suggesting the imminent demise of real business cycles.
Book ChapterDOI
Chapter 1 Labor supply of men: A survey
TL;DR: In this article, a survey of the labor supply of men is presented, focusing on the determinants of whether men work for pay in the labor market and, if so, the determinant of their hours of work.