- King-Plosser-Rebelo preferences satisfy balanced growth requirements, we have that income and substitution effects of labor cancel. Labor does not respond to a change in the wage level.
- Greenwood-Hercowitz-Huffman preferences shut off the wealth channel: There is only a substitution effect left, hence labor co-moves with wages.
- Jaimovich-Rebelo create the nested case with a wealth effect within the two aforementioned.
Is there any commonly used preference specification for which the wealth effect dominates the substitution effect, and hence labor supply reduces as a response to an increase in wages?