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Is there a common way of modeling these preferences? …

KPR preferences are generally given by $$ \frac{c^{1-\sigma}}{1-\sigma} \cdot v(l)$$ with $l$ being leisure. … yield $$ n = \frac{T}{2 - \gamma} \tag 2$$ As $\gamma \in (0, 1)$, that means that we have no fully control about the level of working hours: We cannot get that $n<0.5$ is an optimal choice with these preferences …

The macro-literature insists on a consumption-leisure elasticity of 0 to match the balanced growth fact of constant labor supply. Is there any paper that tries to evaluate this elasticity using micr …

As I understand it, you're trying to estimate a demand system for different goods. Have a look at Aguiar and Bils (forthcoming AER), who use the consumption expenditure survey to do exactly that. The …

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. …

We have learned that any "strictly positive monotonous transformation" of utility functions is okay, as long as they preserve the ranking of choices implied by the underlying preferences. …

Neoclassical Theory The rational agent under a general class of preferences does first decide his optimal consumption level given (permanent) income, and then decides how to allocate that consumption …

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: $$ \frac{\partial(1- … {\partial l}{\partial w} = \frac{u_l}{u_{ll} - \frac{u^2_{lc}}{u_cc}}$$ Hence, the Frisch elasticity is given by $$ \eta = \frac{u_l}{\frac{u^2_{lc}}{u_cc} - u_{ll}}\frac{1}{1-l}$$ With the given preferences …

Are homothetic preferences strictly monotonically increasing? … Indeed, you can have decreasing preferences $U(x,y) = -x -y$ for whom homotheticity holds. Are nomothetic preferences weakly monotonic? …

In the limiting case of $\sigma\to 1$, we receive the standard additively-separable preferences $$ U(c,l) = \log c + v(l)$$ In the latter case, if I want to scale the relevance of leisure in total preferences … , I can rewrite the preferences as $\log c + Av(l)$, and use $A$ for this matter. …

One approach: Look at the unscaled preferences $$U(c,l) = \left(c v(l)\right)^{1-\sigma}$$ A log transformation reveals $$ (1-\sigma)\log\left(c \right) + (1-\sigma)\log v(l)$$ Let $v(l) = l^\gamma …

What are translog preferences? The wikipedia article only clears up that it stands for transcendental logarithmic preferences, and that they are a generalization of Cobb-Douglas preferences. …

The nerd and the football player have the same indifference curves, but not the same preferences. The point is this: Both agree on the "grouping" of things. … Your Example If you look at Jim and Pat, they have exactly inverse utility functions and hence inverse ranking in their preferences. …

Eichenbaum and Fisher (2005) follow Kimball (1995) in allowing for the possibility that the elasticity of demand is increasing in a firm’s price. Which is not exactly what I was looking for, but it's …