On testing the intertemporal substitutio
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Richard Rogerson; Peter Rupert
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Article
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1993
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Elsevier Science
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English
β 661 KB
Many empirical tests of the intertemporal substitution theory of labor market fluctuations have assumed that shocks to the labor demand curve are the sole source of variance in hours and wages. We show that conclusions based on these tests are very sensitive to small deviations from this extreme cas