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Stone–Geary type preferences and the long-run labor supply
Evolutionary and Institutional Economics Review Pub Date : 2021-04-03 , DOI: 10.1007/s40844-021-00204-6
Tamotsu Nakamura

In most advanced economies, working hours have steadily declined, while the per-capita income has steadily increased. Boppart and Krusell (J Polit Econ 128(1):118–157, 2020) propose a new preference class in order to account for these observations. They show that the income effect on labor supply exceeds the substitution effect in the balanced-growth path. However, the longer-term changes, or less-developed economies, reveal backward-bending relationships between income and working hours. To explain this fact, we introduce Stone–Geary type non-homotheticity in preferences into a non-overlapping generations model, and analyze how working hours evolve with income. With the non-homotheticity, the long-run equilibrium labor supply bends backward. Further, the backward-bending curve emerges not only as a transitional phenomenon, but also in the balanced-growth path.



中文翻译:

Stone–Geary类型的偏好和长期劳动力供给

在大多数发达经济体中,工作时间稳步下降,而人均收入却稳步增长。Boppart和Krusell(J Polit Econ 128(1):118-157,2020)提出了一个新的偏好类别,以解释这些观察结果。他们表明,对劳动力供给的收入效应超过了均衡增长路径中的替代效应。但是,长期变化或经济欠发达揭示了收入与工作时间之间的倒退关系。为了解释这一事实,我们将偏好的Stone–Geary类型非均等性引入到不重叠的世代模型中,并分析了工作时间如何随着收入而变化。由于非均质性,长期的均衡劳动力供给向后弯曲。此外,向后弯曲曲线不仅以过渡现象出现,

更新日期:2021-04-04
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