Why Macro Labor Supply is More Elastic Than Micro: Theory and Policy ImplicationsItalian Treasury (2008)
AbstractMicro and Macro estimates of labor supply don't have to be the same since they refer to different variables. This is shown using the same PSID data for the micro and the macro estimate. The macro elasticity is widely bigger than the micro elasticity as it is assumed by Prescott (1986) when calibrating the RBC model.
- Labor Supply Micro Macro Estimate
Publication DateApril 18, 2008
Citation Informationriccardo fiorito. "Why Macro Labor Supply is More Elastic Than Micro: Theory and Policy Implications" Italian Treasury (2008)
Available at: http://works.bepress.com/riccardo_fiorito/31/