The Financial Labor Supply Accelerator
نویسندگان
چکیده
منابع مشابه
The Financial Labor Supply Accelerator ∗
When minimum down payments for durable purchases constrain a household’s debt, a persistent wage increase generates a liquidity shortage. This limits the income effect, so hours worked grow. This is the financial labor supply accelerator, which links labor supply to collateralized household borrowing. The mechanism generates a positive comovement of labor supply and household debt, whose streng...
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Many economists believe that credit market distortions create a financial accelerator which destabilizes the economy. This paper shows that when credit market distortions arise from adverse selection they sometimes stabilize the economy rather than destabilize it. The stabilizing forces are closely related to forces that cause overinvestment in static models. When investment projects are equity...
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Flexible Labor Supply Models Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit. JEL Classification: H31, J22
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2011
ISSN: 1556-5068
DOI: 10.2139/ssrn.1875723