Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?

By Miles S. Kimball, Matthew D. Shapiro. 2008

236 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Gender Studies

View Paper: https://www.semanticscholar.org/paper/9b5a43c385751d8e7b388f712f319d7a66b62fd4

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Citations in the corpus

Overborrowing, Financial Crises and ‘Macro-Prudential’ Policy? (2011, unknown): “The Frisch elasticity of labor supply (1/ω) is set equal to 1, in line with evidence by Kimball and Shapiro (2008).”
The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries (2017, methodology): “Although some agreement exists among labor economists that large, permanent changes in real wages induce relatively modest differences in labor supply, Kimball and Shapiro (2008) write that “there is much less agreement about whether the income and substitution effects are both large or both small.””
Optimal Time-Consistent Macroprudential Policy (2017, background): “Note, however, that neither the nature of the amplification mechanism nor the normative arguments stated in the previous Section rely on κt being stochastic, and that even with κ constant models in this class can produce crises dynamics with realistic features (see Mendoza (2010) and Bianchi and Men”
How Far are We from the Slippery Slope? The Laffer Curve Revisited (2009, unknown): “Ljungqvist and Sargent (2006), Blanchard (2004) as well as Alesina, Glaeser, and Sacerdote (2005).”
The Value of Working Conditions in the United States and Implications for the Structure of Wages (2018, background): “…evidence for many economic topics including environmental policy (Carlsson and Martinsson, 2001; Carson, 2012), consumer preferences (Revelt and Train, 1998), labor supply (Kimball and Shapiro, 2008), retirement decisions (van Soest and Vonkova, 2014), and long-term care (Ameriks et al., 2015).”
The Quantitative Importance of News Shocks in Estimated DSGE Models (2012, methodology): “Overall, our estimates are in line with those in previous work of Smets and Wouters (2007), Justiniano et al.”
Taxing Capital? Not a Bad Idea After All! (2009, unknown): “Finally, Kimball and Shapiro (2005) use preferences that are homothetic in hours worked (rather than in leisure) where the substitution and income e¤ects exactly cancel each other and obtain a Frisch labor supply elasticity around 1, which is the one implied in our benchmark economy.”
The Laffer curve revisited (2011, result): “This value is in line with e.g. Cooley and Prescott (1995) and Prescott (2002, 2004, 2006), while a value close to 1 as in Kimball and Shapiro (2008) may be closer to the current consensus view.”
Reconciling Cyclical Movements in the Marginal Value of Time and the Marginal Product of Labor (2009, background): “Kimball and Shapiro (2003) estimate the Frisch elasticity from the decline in hours of work among lottery winners, based on the assumption that the uncompensated elasticity of labor supply is zero.”