Micro and macro elasticities in a life cycle model with taxes
By: Richard Rogerson, Johanna Wallenius.
Contributors: Wallenius, Johanna.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13017; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13017.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on equilibrium hours of work.  We find that changes in taxes have large aggregate effects on hours of work.  Moreover, we find that there is no inconsistency between this result and the empirical finding of small labor elasticities for prime age workers.  In our model, micro and macro elasticities are effectively unrelated.  Our model is also consistent with other cross-country patterns"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/1/2007.

Includes bibliographical references.

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