Questions tagged [frisch-elasticity]
The frisch-elasticity tag has no usage guidance.
4
questions
7
votes
2
answers
1k
views
Calibration of utility function parameters controlling labor disutility
Consider the very basic utility function
$$ u(c, n) = \log (c) - \alpha \frac{n^{1 + \frac{1}{\nu}}}{1 + \frac{1}{\nu}}$$
Where $c$ is consumption and $n$ is working hours. As the Frisch elasticity ...
- 10.7k
6
votes
2
answers
409
views
Unemployment and the Frisch-Elasticity
There is the long debate on the Frisch-Elasticity being the driver of unemployment over the business cycle.
One argument against the voluntary-unemployment mechanism of RBC models is that if we ...
- 10.7k
6
votes
1
answer
328
views
Generalized KPR: Frisch Elasticity
Consider the following version of KPR preferences (with $l$ being leisure):
$$ U(c,l) = \left(\left(c\right)^\gamma l^\omega\right)^{1-\sigma}$$
I'm after the Frisch elasticity:
$$ \frac{\partial(1-...
- 10.7k
3
votes
1
answer
126
views
Infinite labor elasticity with frisch elasticity
It is from Hansen(1985)'s paper.
Suppose that household has utility function $u(c)+v(1-h)$ and they can choose probability to work($h$) as $\alpha$.
There is an insurance $b_t$ giving $1$ unit of ...
- 146