Elastic Labor Supply

  • Stephen J. Turnovsky
  • Published 1998

Abstract

Endogenizing labor supply leads to fundamental changes in the equilibrium structure of the AK growth model. The balanced growth equilibrium can be described in terms of two tradeoff loci relating the equilibrium growth rate to the fraction of time devoted to leisure. The implications of endogenous labor supply for fiscal policy are analyzed. Three issues… (More)

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