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Reconciling Jaimovich–Rebello preferences, habit in consumption and labor supply

Tom Holden, +2 more
- 25 Apr 2018 - 
- Vol. 168, pp 132-137
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TLDR
In this paper, a form of a utility function of consumption with habit and leisure that is compatible with long-run balanced growth, hits a steady state observed target for hours worked, and is consistent with micro-econometric evidence for the inter-temporal elasticity of substitution and the Frisch elasticity was studied.
About: 
This article is published in Economics Letters.The article was published on 2018-04-25 and is currently open access. It has received 2 citations till now. The article focuses on the topics: Frisch elasticity of labor supply & Elasticity of substitution.

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R&D, growth, and macroprudential policy in an economy undergoing boom-bust cycles

Claudio Battiati
- 01 Mar 2019 - 
TL;DR: This article incorporated Schumpeterian endogenous growth into a DSGE model with credit-constrained entrepreneurs to show how shocks affecting firms' access to credit can generate boom-bust cycles featuring large fluctuations in land prices, consumption, and investment.
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Flexible Labour, Income Effects, and Asset Prices

Rahul Nath
- 01 Jan 2018 - 
TL;DR: In this paper, the authors used Jaimovich-Rebel preferences with internal habits in consumption and showed that asset prices are superior when the first channel is strong and the second channel is weak.
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Journal ArticleDOI

Risk premia and term premia in general equilibrium

Andrew B. Abel
- 19 Feb 1999 - 
TL;DR: The authors analyzes term premia and risk premia in a general equilibrium model with catching up with the Joneses preferences and a novel formulation of leverage, and provides an algorithm to match the means and variances of the riskless rate and the rate of return on equity.
Journal ArticleDOI

Convergence in Macroeconomics: The Labor Wedge*

Robert Shimer
- 01 Jan 2009 - 
TL;DR: The behavior of the labor wedge, the ratio between the marginal rate of substitution of consumption for leisure and the marginal product of labor, has been studied in a wide range of settings, including the United States and continental Europe as mentioned in this paper.
Journal ArticleDOI

Reconciling micro and macro estimates of the frisch labor supply elasticity

William Peterman
- 01 Oct 2012 - 
TL;DR: In this paper, the authors explore the large gap between the micro-econometric estimates of the Frisch labor supply elasticity and the values used by macroeconomists to calibrate general equilibrium models.
Journal ArticleDOI

Nonseparable Preferences, Frisch Labor Supply, and the Consumption Multiplier of Government Spending: One Solution to a Fiscal Policy Puzzle

Florin Ovidiu Bilbiie, +1 more
- 01 Feb 2011 - 
TL;DR: The authors proposed a theoretical explanation of the positive consumption multipliers of government spending often found in the data, which requires two ingredients: labor demand expands (e.g., prices are sticky) and general nonseparable preferences over consumption and leisure should be such that the two goods are substitutes; this implies that constant consumption labor supply shifts left.
Journal ArticleDOI

News and Business Cycles in Open Economies

Nir Jaimovich, +1 more
- 01 Dec 2008 - 
TL;DR: In this paper, the authors study the effects of news about future total factor productivity (TFP) in a small open economy and propose an open-economy model that generates comovement in response to TFP news.
Related Papers (5)

Estimates of the Frisch Elasticity of Labor Supply: A Review

Charles J. Whalen, +1 more
- 01 Jan 2017 - 

The labor-supply elasticity and borrowing constraints: Why estimates are biased

David Domeij, +2 more
- 01 Apr 2006 - 

Assessing the Empirical Validity of the Intertemporal Labor Supply Response from a Stochastic Overlapping Generations Model with Incomplete Markets

Juan Contreras, +2 more

Indeterminacy in discrete-time infinite-horizon models with non-linear utility and endogenous labor

Kazuo Nishimura, +1 more
- 01 Apr 2007 - 

Intertemporal substitution in consumption, labor supply elasticity and sunspot fluctuations in continuous-time models

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- 01 Dec 2007 - 
Frequently Asked Questions (1)
Q1. What are the contributions in "Reconciling jaimovich-rebello preferences, habit in consumption and labor supply" ?

This note studies two forms of a utility function of consumption with habit and leisure that are ( a ) compatible with long-run balanced growth, ( b ) hit a steady state observed target for hours worked and ( c ) are consistent with micro-econometric evidence for the inter-temporal elasticity of substitution and the Frisch elasticity of labor supply. In Theorem 3 the authors propose a generalized JR utility function that in conjunction with a labor wedge solves the problem.