Bloemen, Hans G.; Kapteyn, Arie - In: Journal of Applied Econometrics 23 (2008) 4, pp. 395-422
We consider a utility-consistent static labor supply model with flexible preferences and a nonlinear and possibly non-convex budget set. Stochastic error terms are introduced to represent optimization and reporting errors, stochastic preferences, and heterogeneity in wages. Coherency conditions...