an empirical analysis of life cycle fertility and female labor supply this paper examines us household fertility and female labor supply over the life cycle using data from the panel study of income dynamics the authors investigate how maternal time inputs and market expenditures on offspring as well as the benefits they yield their parents vary with ages of offspring and influence female labor supply and contraceptive behavior the econometric framework combines a female labor supply model and a contraceptive choice index function it also accounts for the fact that conceptions are not perfectly controllable events using longitudinal data on married couples the authors estimate these equations and test alternative specifications of the technologies governing child care the findings suggest that while parents cannot perfectly control conceptions variations in child care costs do affect life cycle spacing of births furthermore the results demonstrate the gains of modeling the linkages between female labor supply and fertility behavior at the household level authors modified

can megamergers improve bank efficiency abstract this paper uses a fitted multiproduct translog cost function to simulate mergers between pairs of us commercial banks with assets exceeding 1 billion and studies the predicted impact of such mergers on total costs thick frontier analysis reveals that variations in x efficiency dominate scale product mix and branching efficiencies ex ante financial data imply that costs could potentially be reduced in nearly half of the possible mergers except those between banks each larger than 10 billion most cost efficient mergers are across state lines apparently a result of variations in product mix

a dea study to evaluate the relative efficiency and investigate the reorganization of the credit department of farmers associations in taiwan in this study data envelopment analysis models were applied to evaluate the relative efficiencies of the credit departments of farmers associations cdfas in taiwan the findings show that the overall efficiency scores are not best and scale for cdfas in taiwan is relative small it implies that the reorganization of the cdfas may be appropriate if more efficient organization is to be pursued thus this study investigated cdfas reorganization to increase the efficiency the proposed cdfas reorganization alternatives have higher average efficiency scores than the current cdfas

some models for estimating technical and scale inefficiencies in data envelopment analysis in management contexts mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best in this capacity mathematical programming serves as a planning aid to management data envelopment analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments however they may have been planned or executed mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities the ccr ratio form introduced by charnes cooper and rhodes as part of their data envelopment analysis approach comprehends both technical and scale inefficiencies via the optimal value of the ratio form as obtained directly from the data without requiring a priori specification of weights and or explicit delineation of assumed functional forms of relations between inputs and outputs a separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of dea directly on observational data technical inefficiencies are identified with failures to achieve best possible output levels and or usage of excessive amounts of inputs methods for identifying and correcting the magnitudes of these inefficiencies as supplied in prior work are illustrated in the present paper a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing constant or decreasing returns to scale in multiple input and multiple output situations the results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with contestable market theories

new evidence on labor supply employment versus hours elasticities by sex and marital status using the tri annual micro panel data of the survey of income and program participation we estimate fixed effects labor supply models separating the extensive and intensive margins the employment elasticity is 0 6 for single men versus 1 1 for married men the employment elasticity is 2 4 for single women versus 1 8 for married women the compensated hours worked elasticity is 0 4 for employed single and married men and 0 7 for employed single and married women the implied aggregate employment elasticity of 1 5 and hours per employee elasticity of 0 5 indicate employment fluctuations account for three fourths of wage induced variation in labor hours

the dominance of inefficiencies over scale and product mix economies in banking abstract this study measures and analyzes inefficiencies for all u s banks in 1984 inefficiencies are measured relative to a thick frontier cost function and are found to dominate measured scale and product mix economies most inefficiencies are operational in nature involving the overuse of physical inputs rather than financial involving overpayment of interest also technical inefficiencies proportionate overuse of all inputs dominate allocative inefficiencies improper mix of inputs these results suggest that competitive pressures in banking from deregulation will be focused primarily on banks that do not control costs rather than on those of a particular size or product mix

adoption of green chemistry an analysis based on us patents abstract green chemistry patents are an indicator of environmental innovation and r d over 3200 green chemistry patents were granted in the us patent system between 1983 and 2001 with most assigned to the chemical sector the university and government sectors place greater emphasis on green chemistry than most industrial sectors worldwide the emphasis on green chemistry technology relative to chemical plastic rubber and polymer technologies has increased since 1988 the united states appears to have a competitive advantage in green chemistry the most rapid growth in the emphasis on us green chemistry patents coincides with revisions to major us environmental laws in the late 1980s and early 1990s however the ratio of green chemistry patents to patents in other areas of chemical sciences in heavily regulated industries are low suggesting that these industries did not necessarily embrace green chemistry as a means to reduce their regulatory burden

intertemporal substitution and λ constant comparative statics abstract this paper characterizes intertemporal substitution along intertemporal consumption profiles a precise definition of the intertemporal elasticity of substitution is presented and compared to intertemporal analogs of the hicks allen and direct elasticities of substitution and the marginal utility of wealth or constant own price elasticity of demand in a model with perfect foresight i establish that constant comparative statics accurately characterizes intertemporal substitution if and only if lifetime utility is intertemporally additive i also demonstrate the usefulness of constant comparative statics in characterizing intertemporal substitution in models without time separability or perfect foresight

the propensity to patent abstract this paper analyzes the relationship between 1974 rd among the exceptions the tendency was toward diminishing returns variables measuring overseas sales federal r d support diversification scope of invention use and invention type had only modest explanatory power there was no significant evidence of disproportionate patent accumulation in the more highly concentrated industries

does unemployment insurance crowd out spousal labor supply previous research on unemployment insurance ui has emphasized the program s effect on individual search behavior this state contingent income may also reduce the labor supply of family members during the unemployment spell we investigate this question within the context of wives labor supply responses to their husbands unemployment spells we find strong crowdout of this form of family self insurance our estimates imply that for each dollar of ui receipt wives earn up to 73 cents less the reduction in spousal hours of work is over 40 as large as previous estimates of the effect of ui on search time of husbands

traditional and nontraditional banking an information theoretic approach abstract this paper uses a multiproduct approach to analyze the costs of a sample of large banks where bank outputs are measured to account for the different types of information produced by banks diseconomies of scope are found between traditional banking activities of originating and monitoring loans and nontraditional activities of loan selling and buying this suggests maintaining fire walls between commercial bank functions and investment bank functions after the glass steagall act is repealed will not sacrifice joint production economies it also suggests that arguments for repeal of the act based on the existence of such economies are ill founded

state dependence serial correlation and heterogeneity in intertemporal labor force participation of married women a dynamic search framework is developed to analyze the intertemporal labor force participation behavior of married women using longitudinal data to allow for a rich dynamic structure the sensitivity to alternative distributional assumptions is evaluated using linear probability and probit models the dynamic probit models are estimated using maximum simulated likelihood msl estimation to overcome the computational difficulties inherent in maximum likelihood estimation of models with nontrivial error structures the results find that participation decisions are characterized by significant state dependence unobserved heterogeneity and negative serial correlation in the error component the hypothesis that fertility decisions are exogenous to women s participation decisions is rejected when dynamics are ignored however there is no evidence against this hypothesis in dynamic model specifications women s participation response is stronger to permanent than current nonlabor income reflecting unobserved taste factors

human capital risk contract enforcement and the macroeconomy we use data from the survey of consumer finance and survey of income program participation to show that young households with children are under insured against the risk that an adult member of the household dies we develop a tractable macroeconomic model with human capital risk age dependent returns to human capital investment and endogenous borrowing constraints due to the limited pledgeability of human capital limited contract enforcement we show analytically that consistent with the life insurance data in equilibrium young households are borrowing constrained and under insured against human capital risk a calibrated version of the model can quantitatively account for the life cycle variation of life insurance holdings financial wealth earnings and consumption inequality observed in the us data our analysis implies that a reform that makes consumer bankruptcy more costly like the bankruptcy abuse prevention and consumer protection act of 2005 leads to a substantial increase in the volume of both credit and insurance

labor supply and taxes a survey i survey the male and female labor supply literatures focusing on implications for effects of wages and taxes for males i describe and contrast results from three basic types of model static models especially those that account for nonlinear taxes life cycle models with savings and life cycle models with both savings and human capital for women more important distinctions are whether models include fixed costs of work and whether they treat demographics like fertility and marriage and human capital as exogenous or endogenous the literature is characterized by considerable controversy over the responsiveness of labor supply to changes in wages and taxes at least for males it is fair to say that most economists believe labor supply elasticities are small but a sizeable minority of studies that i examine obtain large values hence there is no clear consensus on this point in fact a simple average of hicks elasticities across all the studies i examine is 0 30 several simulation studies have shown that such a value is large enough to generate large welfare costs of income taxation for males i conclude that two factors drive many of the differences in results across studies one factor is use of direct vs ratio wage measures with studies that use the former tending to find larger elasticties another factor is the failure of most studies to account for human capital returns to work experience i argue that this may lead to downward bias in elasticity estimates in a model that includes human capital i show how even modest elasticities as conventionally measured can be consistent with large welfare costs of taxation

reexamining the added worker effect i introduction the added worker effect refers to a wife entering the labor force when her employed husband becomes unemployed this labor supply response is a transitory method of intertemporally smoothing family income and consumption and is of interest to labor economists and to macroeconomists concerned with the labor force participation of married women over the business cycle the added worker effect is familiar in terms of the income and substitution framework of the labor supply model when family earnings fall as a result of the husband s unemployment the income effect influences the wife to increase her labor supply similarly the wife s reservation wage for market work falls when the husband s increased nonemployment time provides a substitute for her home production and she is more likely to join the labor force as an added worker the wife s reservation wage is also influenced by the degree of complementarity or substitutability of leisure time between the husband and the wife observing the net result of these three factors the existence and the magnitude of the added worker effect is an empirical question this paper expands on the conventional income and substitution explanations in order to emphasize how employment uncertainty and liquidity constraints influence the added worker effect in the context of a dynamic model of family labor supply an unanticipated unemployment spell by the husband and the resulting shift in the budget constraint will alter expectations of future unemployment probabilities which will cause the wife to revise her life cycle profile of current and future labor supplies the explanation of liquidity constraints as a cause of the added worker effect is discussed in much of the literature see mincer 1962 1966 killingsworth and heckman 1986 and rosen 1992 as stressed by lundberg 1985 anticipated unemployment should not produce an added worker effect unless credit constraints limit access to borrowing against future income explaining how the timing of labor supply could be affected by variations in family income mincer 1962 cites capital market imperfections as a reason why a transitory increase in labor force participation of the wife may well be an alternative to dissaving asset decumulation or increasing debt while the added worker effect is easily explained by theoretical models of family labor supply such as those sketched above or that presented by ashenfelter 1980 empirical work has failed to reach a consensus regarding its magnitude or even whether it exists 1 although heckman and macurdy 1982 and lundberg 1985 have shown that the added worker effect is small yet significant pencavel 1982 does not find an added worker effect once he controls for individual specific fixed effects and maloney 1987 1991 does not find any evidence of an added worker effect it is interesting to note the wide variety of data used in this literature heckman and macurdy use annual panel data lundberg uses monthly panel data constructed from quarterly interviews pencavel uses annual panel data constructed from quarterly interviews and maloney uses annual cross sectional data this paper is motivated both by the conflicting empirical work regarding whether or not the added worker effect exists and by the view that the added worker effect should be analyzed using panel data with a short recall period cross sectional microdata cannot adequately capture the intertemporal decisions of wives joining the labor force when their husbands become unemployed annual measures of labor supply are less than ideal for examining the added worker effect since short spells of unemployment by the husband in the preceding year are often forgotten see horvath 1982 and akerlof and yellen 1985 my purpose is to document the magnitude of the added worker effect using monthly longitudinal microdata from the current population survey cps

applying data envelopment analysis in analysing the organizational change for credit departments of farmers associations in taiwan this study attempts to apply the data envelopment analysis to approach the performance of the credit departments of farmers associations in taiwan based on the structure of the data envelopment analysis approach this study measures the relative efficiency for credit departments of farmers associations in taiwan via resource redistribution when the amount of resource is fixed it can be distributed to each unit within an organization in a better way it is intended to find the possible improvements for those inefficient credit departments of farmers associations the empirical results show that the overall efficiency scores of the teams indicate is not best and scale for credit departments of farmers associations in taiwan is relatively small it implies that the reorganization of the credit departments of farmers associations may be appropriate if more efficient organization is to be pursued finally the reorganization of the credit departments of farmers associations are studies evidences show

estimating intertemporal labour supply elasticities using structural model in this paper the author proposes empirical models where both the intertemporal substitution elasticity and the elasticities measuring the impact of different wage profiles are estimated taking into account the restrictions derived from utility maximization she considers models assuming a stone geary utility function and also a constant elasticity of substitution across periods function the data used are a sample of men from the michigan panel of income dynamics her estimates support the low intertemporal substitution elasticity found in previous studies the estimates for the uncompensated elasticities are also small copyright 1989 by royal economic society

the entry of the wife into the labor force in response to the husband s unemployment a study of the added worker effect in brazilian metropolitan areas abstract the temporary participation in the labor force of wives whose husbands have become unemployed has been referred to in the literature as the added worker effect awe previous research conducted using data from the united states has found only a small awe a result that accords with life cycle models with perfect capital markets the current article uses panel data obtained using a short recall period to evaluate the awe in the six major brazilian metropolitan areas our results show a positive awe that is much more substantial than those found for the u s economy the finding of an important awe for brazil suggests that liquidity constraints may prevent brazilian households from sufficiently smoothing income and consumption in periods when the male head of the family is unemployed alternatively the significant awe may indicate that the husband s unemployment signals household members that there may be a substantial reduction in future income flow

dynamic female labor supply the increase in female employment and participation rates is one of the most dramatic changes to have taken place in the economy during the last century however while the employment rate of married women more than doubled during the last 50 years that of unmarried women remained almost constant to empirically analyze these trends we estimate a female dynamic labor supply model using an extended version of eckstein and wolpin 1989 to compare the various explanations in the literature for the observed trends this dynamic model provides a much better fit to the life cycle employment pattern than a static version of the model and a standard static reduced form model heckman 1979 the main finding using the dynamic model is that the rise in education levels accounts for about 33 percent of the increase in female employment and the rise in wages and narrowing of the gender wage gap account for another 20 percent while about 40 percent remains unexplained by observed household characteristics we show that this unexplained portion can be empirically attributed to cohort specific changes in preferences or the costs of child rearing and household maintenance finally the decline in fertility and the increase in divorce rates account for only a small share of the increase in female employment rates

technology systems and technology policy in an evolutionary framework the central purpose of this paper is to outline an evolutionary theory of technology policy and to connect it with the emerging literature on national systems of innovation any understanding of technology policy must be based on a clear understanding of the nature of technology and the important differences between science and technology technology can be treated in terms of knowledge skills and artifacts and in each case there are different variety generating mechanisms different selection processes and different institutional structures for policy purposes the degree of connection between these different dimensions of technology is at the core of technology policy c 1995 academic press inc copyright 1995 by oxford university press

the evolution of technologies and investment in innovation the proposition that old knowledge is an input in the production of new knowledge is itself old knowledge in a general sense we all know that current innovations derive partly from past innovations and will themselves influence future ones but within a technology is there a time dependent pattern to innovations more specifically do the characteristics of innovations change systematically when compared to those that precede or follow them and are returns to investment in innovation and the consequent level of such investment dependent in a consistent way on the location of innovative effort in the evolution of a technology our analysis is partly motivated by an unresolved controversy in the economic literature between what may be characterised as the kuznets and the schmookler views of technical change it may therefore be helpful to review briefly the content of this debate kuznets i 930 and burns i 934 and later salter i 960 among others saw technological opportunities as declining over the life cycle of a new product or industry each new technology is limited in the extent to which it can be developed and the most promising opportunities for development are exploited first both kuznets and burns explained the eventual decline in the growth in output of new industries by a decline in the rate of technical change as a given technology matures kuznets stressed the role of price reducing changes in production processes as a force generating growth in output a reduction in the rate of such change he argued leads to a decline in the negative rate of change of the relative price of a new product and a consequent decline in the rate of growth of its output a parallel argument can be made for quality enhancing product innovations which contribute to the growth in demand for a new product as opportunities for the most important quality improvements are exhausted the growth rate in demand declines and the industry gradually approaches obsolescence as newer technologies emerge at the macroeconomic level it follows that both the rate of change in productivity and the growth of the economy depend upon the combination of new versus old industries that account for aggregate output this view of the evolution of technologies has been sharply criticised by schmookler i966 given the cost required to produce an innovation the profitability it contributes increases with market size the larger the demand the greater is the revenue collected from a new product or alternatively the larger is the aggregate cost saving from a superior production process it follows ceteris paribus that a larger market leads to an increase in investment in inno

an empirical study of joint production and scale economies in commercial banking this paper utilizes the translog cost function to test the proposition that the bank productionfunction is characterized by jointness the cross section analysis for the years 1973 through 1978 indicates that bank production is in fact characterized by jointness this result calls into question the findings and implications of studies that utilize the assumption of non jointness in production since virtually all of the major bank cost studies employ the assumption of nonjointness the second part of our analysis examines scale economies for the banking firm while allowing for jointness in production our estimates indicate that scale economies characterize bank production at only small bank sizes and that the cost structure of large banks is characterized by diseconomies of scale

household labor supply and the gains from social insurance the marginal gains from social income insurance programs are captured by the gap in the marginal utility of consumption across states of nature to identify this gap in the context of the household this paper offers a new labor supply based approach that leverages household level economic interactions and optimality conditions we demonstrate that in frameworks of efficient household allocations spousal labor supply responses to shocks have direct implications for the gains from more generous government benefits to households we show that this holds for both intensive and extensive margin responses under fairly general conditions our analysis illustrates how labor market data can be used for assessing marginal welfare gains in a general class of social insurance schemes including the large and important programs of disability insurance and survivors benefits hence household labor supply behavior and responses to shocks which are widely studied in theoretical and empirical work hold valuable information for the optimal design of social insurance

the effects of social security in a life cycle family labor supply simulation model abstract we simulate a number of social security provisions in an overlapping generations model of family labor supply the program causes both men and women to shift labor toward the beginning of the life cycle increases the family s ratio of retirement consumption to consumption when young and lowers both wage rates but does not substantially alter the male female wage ratio the wealth effects of the program appear to dominate the incentive effects our exhaustive sensitivity analysis reveals that our results are robust to changes in several key labor supply parameters the intertemporal male and female own wage elasticities and the cross wage elasticity

technical change organizational form and the structure of bank production of those technological characteristics related to the nature of competition among firms in an industry or market scale economies and technical change are especially important economies of scale are said to exist when an equiproportional increase in all inputs results in a greater than proportional increase in output or equivalently when an increase in output at constant input prices leads to a less than proportional increase in total costs thus average costs decline as output expands depending upon the extent to which costs decline as output increases regulation of the firms in the industry may be necessary l the literature analyzing scale economies in commercial banking is voluminous the early studies on scale economies in banking include those by benston 1965 1972 greenbaum 1967 murphy 1972 and bell and murphy 1968 more recent studies include those by benston hanweck and humphrey 1982 and clark 1984 2 this literature has established that mild scale economies exist in bank

life cycle labour supply with human capital econometric and behavioural implications i examine econometric and behavioural implications of including human capital in the life cycle labour supply model with human capital the wage is no longer the price of time which is instead the wage plus returns to work experience this has important implications first labour supply elasticities become functions of both preference and wage process parameters one cannot estimate them separately second the data appear consistent with larger elasticities than prior work suggests third contrary to conventional wisdom permanent tax changes can have larger effects on current labour supply than temporary changes fourth effects of permanent tax changes grow over time

estimating life cycle labor supply tax effects we present an econometrically tractable life cycle labor supply model for panel data including intertemporally progressive taxes on uncertai wage and nonwge incomes our two stage fixedeffects generalized method of moments approach first extimates intretemporal and then intertemporal preferences specification testing domonstrates the value of incorporating joint progressive taxation of labor and nonlabor incomes results for prime age men emphasize the roles played by hourly wage endogeneity worker specific effects the measure of the rate of pay and intemporal budget constaint nonseparability simulations indicate that recent tax reform while not self financing stimulated made labor supplied by about 3 percent and reduced deadweight loss about 16 percent

seasonal rural labor markets and their relevance to policy analyses in developing countries abstract seasonality is a salient feature of rural livelihoods and particularly within agriculture the demand for labor varies with the seasons and weather in low income countries agriculture employs almost two thirds of the labor force and incomes from labor are a major determinant of welfare therefore an appropriate model representation of rural labor markets is critical when analyzing agricultural and food policies economy wide models are commonly used for ex ante policy analysis but have so far ignored the influence of seasonality implicitly assuming separability of seasonal labor demand and supply this study relaxes that assumption using a computable general equilibrium cge model calibrated to the bhutanese economy as an illustrative case using model setups with and without seasonal labor markets a cereal export ban of india is simulated leading to higher import prices for bhutan results demonstrate that neglecting the influence of seasons on rural labor markets systematically biases model results assuming homogeneity of labor units i e allowing substitution across seasons understates the impacts of policy changes on rural wage rates distorts households labor leisure trade off decisions and overstates agricultural supply response given the widespread use of economy wide models the results are important for understanding the implications of domestic and global policy changes for agriculture and welfare in developing economies

cost reducing r d in oligopoly abstract this paper provides a conjectural variations model to explore competition in cost reducing r d and the nature of the inter firm externalities it is shown that 1 r d investment in a market with price competition becomes optimal if firms expect that changes in their own r d investment are followed by the rival firms 2 the optimal r d subsidies are positive in collusive oligopolies but negative in competitive oligopolies 3 joint r d ventures in oligopoly could reduce total surplus by causing underinvestment and 4 promoting price competition reduces welfare if firms are not collusive in their r d decisions

some tests of the incentive effects of the research and experimentation tax credit abstract the effectiveness of the tax credit for research and experimentation r e expenditures is examined using a panel of firm data for the period 1975 through 1988 using a structural model the results generally indicate that the credit resulted in increased r e spending however the effect of the credit was substantially mitigated by the impacts of net operating loss carryovers and low growth opportunities results also indicate some degree of decreased r e spending as a result of debt restructuring activity tax policy implications are discussed

the sensitivity of labor supply parameter estimates to unobserved individual effects fixed and random effects estimates in a nonlinear model using panel data life cycle models of labor supply predict the presence of an unobserved individual effect in the labor supply equation that is correlated with observed explanatory variables leading to an omitted variables bias in the cross section i examine the sensitivity of parameter estimates to the presence of these effects using fixed and random effect tobit models the estimated effects of children are too large in the cross section the estimated intertemporal substitution elasticity ranges from 1 1 to 1 7 the results are similar for fixed and random effects models and for models using different specifications of the dependent variable

household choices in equilibrium this paper is an empirical investigation of equilibrium restrictions on household consumption and male labor supply it exploits a simple factor structure rationalized by two assumptions that household allocations are pareto optimal and that the labor market is competitive the paper estimates household preferences and tests how well this parsimonious factor structure represents panel data on married couples and time series data on asset returns most of the estimates are roughly comparable to those found in previous work no evidence against the simple factor representation is found and the intertemporal capital asset pricing model is not rejected copyright 1990 by the econometric society

the relationship between firm investments in technological innovation and political action economic theory recognizes the importance of investments in both technological innovation and political activity in firm behavior and extensive research exists which examines independently these expenditures however surprisingly little attention is devoted to analyzing technological innovation and political action expenditures jointly technological innovation and political action are two of the options firms face regarding how to achieve lower costs or market power the characteristics of these choices not only affect the degree to which each is used but also have widely divergent normative and policy implications for society furthermore many forms of technological innovation require regulatory approval so that firms may use the two forms of investment in conjunction with each other in addition to treating them as separate investment alternatives this paper investigates the relationships between firm investments in technological innovation and political activity both forms of investment seek to lower costs and or create market advantage but economists have long recognized the social importance of technological innovation to economic growth while treating most firm political activity as inefficient growing social concerns surrounding declining innovation productivity and growth and increasing firm political activity suggest that these are timely dimensions to explore jointly in the next section i discuss the relationship between firm investments in technological innovation and political action this discussion motivates the subsequent empirical modelling presented in section iii because of the possibility of simultaneity between firm spending in research and development rd these results hold true to various degrees over industries and industry groups section vi offers conclusions and suggestions for further research

simulation estimation of two tiered dynamic panel tobit models with an application to the labor supply of married women in this paper a computationally practical simulation estimator is proposed for the two tiered dynamic panel tobit model originally developed by cragg 1971 the log likelihood function simulated through procedures based on a recursive algorithm formulated by the geweke hajivassiliou keane simulator is maximized the simulation estimators are then applied to study the labor supply of married women the rich dynamic structure of the labor force participation decision as well as hours worked decisions that are conditional on the participation of married women are identified by using the proposed simulation estimators the average partial effects of the participation and hours worked decisions for married women in response to fertility decisions and increases in the husband s income are also investigated it is found that the hypothesis that the fertility decision is exogenous and the hypothesis that the husband s income is exogenous to married women s labor supply function are both rejected in the dynamic and static two tiered models moreover children aged between 6 and 13 years old may have a negative impact on the hours worked decision for married women that is conditional on their participation however these children may provide some positive incentives for married women to participate in the labor force copyright 2009 john wiley sons ltd

the demand for health some new empirical evidence this paper presents some new estimates of the pure investment and pure consumption models of the demand for health in contrast to previous studies the paper presents parameter estimates of both reduced form and structural demand for health care equations the latter which are obtained by treating health capital as a latent variable in a recursive equation system provide a safer way of checking the consistency of the model s predictions with the data the present analysis of the pure consumption model differs from previous analyses in its recognition of the dependency of the shadow price of initial assets on the entire lifetime profiles of the model s exogenous variables the paper also explores the implications in terms of reliability of parameter estimates of the failure on the part of previous studies to recognize this

household interaction and the labor supply of married women the major increase in the employment rate of married women while that of men remained almost unchanged is one of the most dramatic socioeconomic changes to have taken place during the last century in this paper we argue that shifts in social norms regarding household interaction in determining a married couple s labor supply can provide an explanation specifically we formulate and estimate a dynamic discrete choice labor supply model assuming that there are two types of households classical and modern the classical household follows a stackelberg leader game in which the wife s labor supply decision follows her husband s already known employment outcome the modern family is characterized by a symmetric and simultaneous game that determines their joint labor supply and has a nash equilibrium the family type modern or classical is exogenously determined when the couple gets married but is not observable for estimation the model is estimated using the simulated moments method smm and data from the panel study of income dynamics psid survey for the years 1983 93 the estimated model accurately predicts employment rates and produces a good fit of mean wages to the data we estimate that 38 percent of families are modern and that the participation rate of women in those households is almost 80 percent the employment rate of women in classical families is 10 percent lower than that while the employment rates of men is almost identical in the two household types these results support our hypothesis that part of the increase in labor supply of married women may be due to an increase in the share of modern families in the population

labour supply the roles of human capital and the extensive margin we specify and estimate a life cycle labour supply model that expands on earlier work by simultaneously including human capital accumulation saving and bequests an active extensive margin a realistic specification of the progressive tax structure and the social security system and an accounting for private pensions and health expenditures by incorporating all these features we develop new insights into how taxes affect life cycle labour supply for instance we find that labour supply elasticities vary in important ways with age education and the tax structure itself we also show how human capital affects elasticities differently on the intensive versus extensive margins

employment constraints and the labor supply of married women a reexamination of the added worker effect little evidence is found to support the conventional notion of the added worker effect the husband s unemployment has no measurable impact on the wife s actual hours of work however the constraint on his ability to supply hours of work to the labor market and not simply his unemployment influences his wife s labor supply furthermore the observed hours of work of the wife may not accurately reflect her desired hours of work with these considerations the wife s labor supply is found to be positively associated with the unemployment and underemployment of her husband and this added worker effect is estimated to be quite substantial

corrigendum on a life cycle model of female labour supply in the empirical work in our article on the intertemporal substitution of leisure time for married women heckman and macurdy 1980 we inadvertently constrained the estimated intertemporal substitution elasticity to be too high since this parameter plays a prominent role in discussions of equilibrium models of the business cycle and since our empirical work has been cited in discussions on this topic e g hall 1980 we would like to present a corrected set of empirical results for our model the period t utility function adopted in this note is in the notation of our original paper equation 15

a multisectoral general equilibrium model of schumpeterian growth and fluctuations abstract this paper builds a dynamic multisectoral general equilibrium model of schumpeterian growth and fluctuations based on the endogenous introduction of new products the set of technological opportunities determines the degree of product quality upgrading and consists of breakthroughs and improvements the latter exhibiting diminishing returns if the degree of diminishing returns to technological improvements is low then there is no steady state equilibrium but cycles of breakthroughs and improvements we analyze two symmetric stable patterns of innovation which generate endogenous cycles and growth there is a negative correlation between the duration of each cycle and the long run growth trend