TY - JOUR
T1 - Indivisible labor, lotteries and equilibrium
AU - Rogerson, Richard
N1 - Funding Information:
*I am indebted to Ed Prescott for his guidance. I ha~,e benefited from conversatio~ with John Geaneakoplos. Vittorio Grilii, Rol:ert King, Glenn MacDonald, Rodolfo Manuelli, Walter Oi, and the comments of an anonymous referee. Financial support from the Social Sciences and Humanities Research Council of Canada and NSF Grant No. S~S-85!0861 is gratefully acknowledged.
PY - 1988/1
Y1 - 1988/1
N2 - This paper considers an economy where labor is indivisible and agents are identical. Although the discontinuity in labor supply at the individual level disappears as a result of aggregation, it is shown that indivisible labor has strong consequences for the aggregate bahavior of the economy. It is also shown that optimal allocations involve lotteries over employment and consumption.
AB - This paper considers an economy where labor is indivisible and agents are identical. Although the discontinuity in labor supply at the individual level disappears as a result of aggregation, it is shown that indivisible labor has strong consequences for the aggregate bahavior of the economy. It is also shown that optimal allocations involve lotteries over employment and consumption.
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U2 - 10.1016/0304-3932(88)90042-6
DO - 10.1016/0304-3932(88)90042-6
M3 - Article
AN - SCOPUS:34147175261
SN - 0304-3932
VL - 21
SP - 3
EP - 16
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
IS - 1
ER -