Reconciling cyclical movements in the marginal value of time and the marginal product of labor

Journal of Political Economy

Volumn 117, Issue 2, 2009, Pages 281-323

  Hall, Robert E ^a  

^a STANFORD UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

GOODS EXCHANGE; LABOR SUPPLY; UNEMPLOYMENT;

EID: 65949112485     PISSN: 00223808     EISSN: None     Source Type: Journal    
DOI: 10.1086/599022     Document Type: Article

References (47)

1. Aguiar, Mark, and Erik Hurst. 2005. "Consumption versus Expenditure." J.PE. 113 (October): 919-48.
2. Alexopoulos, Michelle. 2004. "Unemployment and the Business Cycle." J. Monetary Econ. 51 (March): 277-98.
3. Andolfatto, David. 1996. "Business Cycles and Labor-Market Search." A.E.R. 86 (March): 112-32.
4. Attanasio, Orazio P., James Banks, Costas Meghir, and Guglielmo Weber. 1999. "Humps and Bumps in Lifetime Consumption." J. Bus. and Econ. Statis. 17 (January): 22-35.
5. Attanasio, Orazio P., and Hamish Low. 2004. "Estimating Euler Equations." Rev. Econ. Dynamics 7 (April): 406-35.
6. Attanasio, Orazio P., and Guglielmo Weber. 1993. "Consumption Growth, the Interest Rate, and Aggregation." Rev. Econ. Studies 60 (July): 631-49.
7. -. 1995. "Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey." J.P.E. 103 (December): 1121-57.
8. Banks, James, Richard Blundell, and Sarah Tanner. 1998. "Is There a Retirement-Savings Puzzle?" A.E.R. 88 (September): 769-88.
9. Barro, Robert J. 1977. "Long-Term Contracting, Sticky Prices, and Monetary Policy." J. Monetary Econ. 3 (July): 305-16.
10. Barsky, Robert B., E Thomas Juster, Miles S. Kimball, and Matthew D. Shapiro. 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study." Q.J.E. 112 (May): 537-79.
11. Blanchard, Olivier, and Jordi Gali. 2007. "Real Wage Rigidities and the New Keynesian Model." J. Money, Credit and Banking 39 (February): 35-66.
12. Blundell, Richard, Luigi Pistaferri, and Ian Preston. 2008. "Consumption Inequality and Partial Insurance." A.E.R. 98 (December): 1887-1921.
13. Browning, Martin, and Thomas E Crossley. 2001. "Unemployment Insurance Benefit Levels and Consumption Changes." J. Public Econ. 80 (April): 1-23.
14. Browning, Martin, Angus Deaton, and Margaret Irish. 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle." Econ-ometrica 53 (May): 503-44.
15. Brugemann, Bjorn, and Giuseppe Moscarini. 2008. "Rent Rigidity, Asymmetric Information, and Volatility Bounds in Labor Market." Manuscript, Dept. Econ., Yale Univ.
16. Campbell, John Y. and John H. Cochrane. 1999. "By Force of Habit: A Consumption-Based Explanation of Aggregate Stock Market Behavior." J.P.E. 107 (April): 205-51.
17. Carroll, Christopher D. 2001. "Death to the Log-Linearized Consumption Euler Equation! (and Very Poor Health to the Second-Order Approximation)." Advances Macroeconomics 1 (1): art. 6, http://www.bepress.com/bejm/advances/.
18. Chetty, Raj. 2006. "A New Method of Estimating Risk Aversion." A.E.R. 96 (December): 1821-34.
19. Coase, Ronald H. 1960. "The Problem of Social Cost." J. Law and Econ. 3 (October): 1-44.
20. Cohen, Alma, and Liran Einav. 2007. "Estimating Risk Preferences from Deductible Choice." A.E.R. 97 (June): 745-88.
21. Domeij, David, and Martin Floden. 2006. "The Labor-Supply Elasticity and Borrowing Constraints: Why Estimates Are Biased." Rev. Econ. Dynamics 9 (April): 242-62.
22. Fisher, Jonathan, David S. Johnson, Joseph Marchand, Timothy M Smeeding, and Barbara Boyle Terrey. 2005. "The Retirement Consumption Conundrum: Evidence from a Consumption Survey." Working Paper no. 1005-14, Center Retirement Res., Boston Coll.
23. Guvenen, Fatih. 2006. "Reconciling Conflicting Evidence on the Elasticity of Intertemporal Substitution: A Macroeconomic Perspective." J. Monetary Econ. 53 (October): 1451-72.
24. Hagedorn, Marcus, and Iourii Manovskii. 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited." A.E.R. 98 (September): 1692-1706.
25. Hall, Robert E. 1997. "Macroeconomic Fluctuations and the Allocation of Time." J. Labor Econ. 15, no. 1, pt. 2 (January): S223-S250.
26. -. 2008. "Cyclical Movements along the Labor Supply Function." In Labor Supply in the New Century, edited by Katherine Bradbury, Christopher L. Foote, and Robert K. Triest. Boston: Fed. Reserve Bank.
27. Hall, Robert E., and Paul R. Milgrom. 2008. "The Limited Influence of Unemployment on the Wage Bargain." A.E.R. 98 (September): 1653-74.
28. Hansen, Lars Peter, and Ravi Jagannathan. 1991. "Implications of Security Market Data for Models of Dynamic Economies." J.P.E. 99 (April): 225-62.
29. Harris, John R., and Michael P. Todaro. 1970. "Migration, Unemployment, and Development: A Two-Sector Analysis." A.E.R. 60 (March): 126-42.
30. Hosios, Arthur J. 1990. "On the Efficiency of Matching and Related Models of Search and Unemployment." Rev. Econ. Studies 57 (April): 279-98.
31. Hurst, Erik. 2008. "The Retirement of a Consumption Puzzle." Working Paper no. 13789, NBER, Cambridge, MA.
32. Imbens, Guido W., Donald B. Rubin, and Bruce I. Sacerdote. 2001. "Estimating the Effect of Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players." A.E.R. 91 (September): 778-94.
33. Kimball, Miles S., and Matthew D. Shapiro. 2003. "Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?" Manuscript, Dept. Econ., Univ. Michigan.
34. Kydland, Finn E., and Edward C. Prescott. 1982. "Time to Build and Aggregate Fluctuations." Econometrica 50 (November): 1345-70.
35. Low, Hamish, Costas Meghir, and Luigi Pistaferri. 2008. "Wage Risk and Employment Risk over the Life Cycle." Manuscript, Inst. Fiscal Studies, London.
36. Mehra, Rajnish, and Edward C. Prescott. 1985. "The Equity Premium: A Puzzle." J. Monetary Econ. 15 (March): 145-61.
37. Merz, Monika. 1995. "Search in the Labor Market and the Real Business Cycle." J. Monetary Econ. 36 (November): 269-300.
38. Miniaci, Raffaele, Chiara Monfardini, and Guglielmo Weber. 2003. "Is There a Retirement Consumption Puzzle in Italy?" Working Paper no. 03/14, Inst. Fiscal Studies, London.
39. Mortensen, Dale T. and Christopher Pissarides. 1994. "Job Creation and Job Destruction in the Theory of Unemployment." Rev. Econ. Studies 61 (July): 397-415.
40. Mulligan, Casey B. 1999. "Substitution over Time: Another Look at Life-Cycle Labor Supply." In NBER Macroeconomics Annual 1998, edited by Ben S. Bernanke and Julio J. Rotemberg. Cambridge, MA: MIT Press.
41. Pistaferri, Luigi. 2003. "Anticipated and Unanticipated Wage Changes, Wage Risk, and Intertemporal Labor Supply." J. Labor Econ. 21 (July): 729-54.
42. Rogerson, Richard. 1988. "Indivisible Labor, Lotteries and Equilibrium." J. Monetary Econ. 21 (January): 3-16.
43. Rogerson, Richard, Robert Shimer, and Randall Wright. 2005. "Search-Theoretic Models of the Labor Market: A Survey." J. Econ. Literature 43 (December): 959-88.
44. Rogerson, Richard, and Johanna Wallenius. 2009. "Micro and Macro Elasticities in a Life Cycle Model with Taxes." J. Econ. Theory, forthcoming.
45. Romer, David. 2006. Advanced Macroeconomics. New York: McGraw-Hill.
46. Shimer, Robert. 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies." A.E.R. 95 (March): 24-49.
47. -. 2009. "Convergence in Macroeconomics: The Labor Wedge." American Econ. J.: Macroeconomics 1 (January): 280-97.