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 … or paid wages are subject to an unanticipated temporary change, we can derive an analytical expression for the aggregate … Frisch elasticity and illustrate its main components: (i) the intensive and extensive adjustment of hours worked, (ii) the …