TY - JOUR
T1 - New estimates of intertemporal substitution. The effect of corner solutions for year-round workers
AU - Rogerson, Richard
AU - Rupert, Peter
N1 - Funding Information:
*Financial support from NSF grant #SES-8704690 is gratefully acknowledged. We have benefited greatly from the suggestions of John Ham. We thank George Jakubson for his assistance and allowing us to use his computer programs, and Nagesh Revankar for helpful discussions.
PY - 1991/4
Y1 - 1991/4
N2 - This paper estimates the intertemporal elasticity of substitution for married males taking into account that many individuals are at a corner solution for weeks worked by virtue of working year round. The fact that these individuals do not choose to engage in much intertemporal substitution may simply indicate that the corner solution inhibits their ability to do so, rather than indicating a low desire to intertemporally substitute. Our estimates are able to distinguish between these two cases, with the results showing much higher intertemporal elasticities of substitution than reported in earlier studies.
AB - This paper estimates the intertemporal elasticity of substitution for married males taking into account that many individuals are at a corner solution for weeks worked by virtue of working year round. The fact that these individuals do not choose to engage in much intertemporal substitution may simply indicate that the corner solution inhibits their ability to do so, rather than indicating a low desire to intertemporally substitute. Our estimates are able to distinguish between these two cases, with the results showing much higher intertemporal elasticities of substitution than reported in earlier studies.
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U2 - 10.1016/0304-3932(91)90044-O
DO - 10.1016/0304-3932(91)90044-O
M3 - Article
AN - SCOPUS:0001244878
SN - 0304-3932
VL - 27
SP - 255
EP - 269
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
IS - 2
ER -