3
votes
Accepted
Infinite labor elasticity with frisch elasticity
I'll try to translate the argument of Hansen's original (1985) paper
Let $h_t = \alpha_t h$ be aggregate labour supply at $t$.
First define aggregate leisure $\ell_t = 1 - h_t = 1 - \alpha_t h$ which ...
- 12.5k
Only top scored, non community-wiki answers of a minimum length are eligible