Marcet, Albert; Obiols-Homs, Francesc; Weil, Philippe - Sciences économiques, Sciences Po - 2007
Endogenous labor supply decisions are introduced in an equilibrium model of limited insurance against idiosyncratic … shocks: steady states and dynamics. Journal of Monetary Economics 39, 385–403]), labor supply is likely to be lower than … under complete markets. This is due to an ex post wealth effect on labor supply (rich productive agents work fewer hours …