Aggregate implications of labor market distortions
Subtitle: the recession of 2008-9 and beyond
By: Casey B. Mulligan.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- working paper 15681; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15681.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "The aggregate neoclassical growth model - with a labor income tax or "labor market distortion" that began growing at the end of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real GDP that closely resemble actual U.S.  time series.  Of particular interest is the fact that the model - with no explicit financial market - has investment fall steeply during the recession not because of any distortions with the supply of capital, but merely because labor is falling and labor is complementary with capital in the production function.  Through the lens of the model, the fact the real consumption fell significantly below trend during 2008 suggests that labor usage per capita could get somewhat lower than it was at the end of 2009, and is expected to remain below pre-recession levels even after the "recovery.""--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 3/2/2010.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.