Consumption and labor supply

Dale Jorgenson and Daniel T. Slesnick

Journal of Econometrics, 2008, vol. 147, issue 2, 326-335

Abstract: We present a new econometric model of aggregate demand and labor supply for the United States. We also analyze the allocation full wealth among time periods for households distinguished by a variety of demographic characteristics. The model is estimated using micro-level data from the Consumer Expenditure Surveys supplemented with price information obtained from the Consumer Price Index. An important feature of our approach is that aggregate demands and labor supply can be represented in closed form while accounting for the substantial heterogeneity in behavior that is found in household-level data. As a result, we are able to explain the patterns of aggregate demand and labor supply in the data despite using a parametrically parsimonious specification.

Keywords: Consumption; Leisure; Labor; Demand; Supply; Wages (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:147:y:2008:i:2:p:326-335

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