Please use this identifier to cite or link to this item:
http://hdl.handle.net/2445/174943
Title: | Non-separable utilities and aggregate instability |
Author: | Chen, Been‐Lo Lee, Shun-Fa Raurich, Xavier |
Keywords: | Regressió infinita Externalitats (Economia) Política salarial Oferta i demanda Elasticitat Infinite regress Externalities (Economics) Wage policy Supply and demand Elasticity |
Issue Date: | Jun-2020 |
Publisher: | Wiley |
Abstract: | This paper studies an infinite‐horizon two‐sector growth model with sector‐specific externalities and preferences that are non‐separable between consumption and leisure. We find two main results. First, a larger income effect on the labor supply increases the possibility of macroeconomic instability. Second, a larger elasticity of the labor supply may increase or decrease the possibility of aggregate instability, depending on the intensity of the income effect. |
Note: | Versió postprint del document publicat a: https://doi.org/10.1111/ijet.12188 |
It is part of: | International Journal of Economic Theory, 2020, vol. 16, num. 2, p. 222-237 |
URI: | http://hdl.handle.net/2445/174943 |
Related resource: | https://doi.org/10.1111/ijet.12188 |
ISSN: | 1742-7355 |
Appears in Collections: | Articles publicats en revistes (Economia) |
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File | Description | Size | Format | |
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708111.pdf | 472.43 kB | Adobe PDF | View/Open |
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