Flexible Labour, Income Eï¬€ects, and Asset Prices
No 851, Economics Series Working Papers from University of Oxford, Department of Economics
This paper studies how ï¬‚exible labour decisions aï¬€ect asset pricing in a Real Business Cycle model. It uses Jaimovich-Rebelo preferences with internal habits in consumption and distinguishes between two income effect channels (i) the â€˜habit income eï¬€ectâ€™ channel and (ii) the â€˜separability income eï¬€ectâ€™ channel. I ï¬ nd that asset prices are superior when the ï¬ rst channel is strong and the second is weak, this is the case of using GHH preferences with internal habits in consumption.
Keywords: Asset Pricing; Income Eï¬€ects; Jaimovich-Rebelo Preferences (search for similar items in EconPapers)
JEL-codes: E13 E32 E44 G12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.economics.ox.ac.uk/materials/working_p ... and-asset-prices.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oxf:wpaper:851
Access Statistics for this paper
More papers in Economics Series Working Papers from University of Oxford, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Anne Pouliquen ().