Consumer Demand, 'Full Income' and Real Wages

Kevin Dowd (kevin.dowd@hotmail.co.uk)

Empirical Economics, 1992, vol. 17, issue 3, 333-45

Abstract: This paper develops and tests a model of consumer behavior in which income and leisure are simultaneously chosen. Using a version of the AIDS, the author develops a system of consumer demand equations in which consumer demand depends on "full income", relative prices and the real wage rate, and he finds that the predictions of the model are not rejected.

Date: 1992
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