Flexible Labour, Income Effects, and Asset Prices

Rahul Nath

No 851, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper studies how flexible labour decisions affect 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 ‘habit income effect’ channel and (ii) the ‘separability income effect’ 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 Effects; Jaimovich-Rebelo Preferences (search for similar items in EconPapers)
JEL-codes: E13 E32 E44 G12 (search for similar items in EconPapers)
Date: 2018-05-31
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:

Downloads: (external link)
https://ora.ox.ac.uk/objects/uuid:1bb4e27a-0232-43de-aab2-b793446562f5 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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 ( this e-mail address is bad, please contact ).