Item Type |
Journal paper
|
Abstract |
The absence of a trend in hours worked in the postwar United States is an exception: across countries and historically, hours fall steadily by a little below 0.5% per year. Are steadily falling hours consistent with a stable utility function over consumption and leisure under balanced growth of the macroeconomic aggregates? Yes. We fully characterize the class of such functions and thus generalize the well-known “balanced-growth preferences” that demand constant (as opposed to falling) long-run hours. Key to falling hours is an income effect (of steady productivity growth on hours) that slightly outweighs the substitution effect. |
Authors |
Boppart, Timo & Krusell, Per |
Journal or Publication Title |
Journal of Political Economy |
Language |
English |
Subjects |
economics |
HSG Classification |
contribution to scientific community |
HSG Profile Area |
None |
Refereed |
Yes |
Date |
2020 |
Volume |
128 |
Number |
1 |
Page Range |
118-157 |
ISSN |
0022-3808 |
Publisher DOI |
https://doi.org/10.1086/704071 |
Depositing User |
Prof. PhD Timo Boppart
|
Date Deposited |
04 Dec 2020 13:58 |
Last Modified |
20 Jul 2022 17:43 |
URI: |
https://www.alexandria.unisg.ch/publications/261582 |