Kneip, Alois; Merz, Monika; Storjohann, Lidia - 2013
The aggregate Frisch elasticity of labor supply has played a key role in business cycle analysis. This paper develops a … individual labor supply function with non-employment as a possible outcome. Performing a thought experiment in which all offered … or paid wages are subject to an unanticipated temporary change, we can derive an analytical expression for the aggregate …