| Item Type |
Journal paper
|
| Abstract |
We use a simple theoretical framework, a building block of many macroeconomic models, to study the prominently debated relationship between the model parametrisation of the Frisch elasticity and the reduced-form evidence on the elasticity of labour. Focusing on tax holidays, we show that the elasticity measured with a reduced-form approach is only equal to the Frisch-elasticity parameter if there are no income or general equilibrium effects. Furthermore, for a wide range of standard values of the Frisch-elasticity parameter, the response of labour generated by a tax holiday in the model is aligned with the reduced-form evidence. |
| Authors |
Gottlieb, Charles; Onken, Jörn & Valladares-Esteban, Arnau |
| Journal or Publication Title |
European Economic Review |
| Language |
English |
| Keywords |
Frisch Elasticity, Labour Supply, Aggregate Hours, Tax Holidays. |
| Subjects |
economics
social sciences |
| HSG Classification |
contribution to scientific community |
| HSG Profile Area |
SEPS - Economic Policy |
| Refereed |
Yes |
| Date |
October 2021 |
| Publisher |
Elsevier |
| Volume |
139 |
| ISSN |
0014-2921 |
| Publisher DOI |
https://doi.org/10.1016/j.euroecorev.2021.103879 |
| Official URL |
https://www.sciencedirect.com/science/article/pii/... |
| Depositing User |
Prof. Ph.D Charles Gottlieb
|
| Date Deposited |
12 Sep 2021 11:52 |
| Last Modified |
01 Apr 2023 00:25 |
| URI: |
https://www.alexandria.unisg.ch/publications/264294 |
On the measurement of the elasticity of labour
![[img]](http://www.alexandria.unisg.ch/style/images/fileicons/oa_orange.png)
