Linear Aggregation in Neoclassical Labour Supply.

The article focuses on the substantial interest in the theory and estimation of models of labour supply and the joint demand for goods. Neoclassical versions of such models assume that households face parametric prices and wages and can therefore choose hours of employment and quantities of goods ac...

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Publicado en:Review of Economic Studies Vol. 48; no. 1; pp. 21 - 37
Autor principal: Muellbauer, John
Formato: Artículo
Publicado: Oxford University Press / USA Jan81
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Linear Aggregation in Neoclassical Labour Supply.
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        au: Muellbauer, John
        affil: Birkbeck College.
      su:
        Labor supply
        Duality theory (Mathematics)
        Employment
        Income inequality
        Economic demand
        Wages
        Labor economics
      sug:
        subj:
          Labor supply
          Duality theory (Mathematics)
          Employment
          Income inequality
          Economic demand
          Wages
          Labor economics
      ab: The article focuses on the substantial interest in the theory and estimation of models of labour supply and the joint demand for goods. Neoclassical versions of such models assume that households face parametric prices and wages and can therefore choose hours of employment and quantities of goods according to linear budget constraints. The technique of analysis places heavy reliance on duality theory. The basic duality principle is that preferences or technology, which are defined on goods, are under perfect markets, mirrored by dual relationships defined on prices, which directly link behaviour with preferences or technology. This is particularly convenient when one is interested in the implications for preferences of restrictions on market behavior. The article takes up a theorem, which is concerned with aggregating demand functions and labour supply functions, defined not on full income but on non-labour income. It is concerned with a concept of aggregation in which the representative income level is still mean income but the representative wage rate is some non-linear function of the wage distribution.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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