The Library
Perpetual youth and endogenous labor supply: A problem and a possible solution
Tools
Ascari, Guido and Rankin, Neil (2007) Perpetual youth and endogenous labor supply: A problem and a possible solution. Journal of Macroeconomics, Vol.29 (No.4). pp. 708-723. doi:10.1016/j.jmacro.2006.03.001 ISSN 0164-0704.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1016/j.jmacro.2006.03.001
Abstract
In the "perpetual youth" overlapping-generations model of Blanchard and Yaari, if leisure is a "normal" good then some agents will have negative labor supply. We suggest a solution to this problem by using a modified version of Greenwood, Hercowitz and Huffman's utility function. The modification incorporates real money balances, so that the model may be used to analyze monetary as well as fiscal policy. In a Walrasian version of the economy, we show that increased government debt and increased government spending raise the interest rate and lower output, while an open-market operation to increase the money supply lowers the interest rate and raises output.
Item Type: | Journal Article | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HC Economic History and Conditions | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Journal or Publication Title: | Journal of Macroeconomics | ||||
Publisher: | Elsevier BV * North-Holland | ||||
ISSN: | 0164-0704 | ||||
Official Date: | December 2007 | ||||
Dates: |
|
||||
Volume: | Vol.29 | ||||
Number: | No.4 | ||||
Number of Pages: | 16 | ||||
Page Range: | pp. 708-723 | ||||
DOI: | 10.1016/j.jmacro.2006.03.001 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
Data sourced from Thomson Reuters' Web of Knowledge
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |