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GTAP Resources: Resource Display

GTAP Resource #1124

"Incorporation of Labor-Leisure Choice into a Static General Equilibrium Model"
by Fox, Alan

This poster illustrates hwo a simple labor-leisure choice is incorporated into a static general equilibrium model. The specific example is the USITC's U.S. CGE model. Special attention is paid to the parameterization of the labor-leisure choice so that the relative responsiveness of the model is consistent with econometrically observed behavior.

This poster represents a particular application of the work of Charles Ballard ("How Many Hours Are in a Simulated Day? The Effects of Time Endowment on the Results of Tax-Policy Simulation Models," Oct. 1999, Michigan State University). Leisure is incorporated into the utility function of the representative household, and special attention is paid to the parameterization of household utility function in order to achieve a realistic degree of responsiveness of labor supply to changes in the real wage.

The poster will demonstrate how leisure is incorporated into the household utility structure, how the appropriate parameterization is established, and also include some results of a sample simulation to demonstrate the implementation of the model and the importance of the choice of the time endowment parameter.

Resource Details (Export Citation) GTAP Keywords
Category: 2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Created: Bacou, M. (6/20/2002)
Updated: Batta, G. (12/12/2007)
Visits: 2,038
- Labor market issues

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  File format GTAP Resource 1124  (50.8 KB)   Replicated: 0 time(s)
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