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Our paper aims at testing the intertemporal substitution hypothesis (ISH) for small and medium enterprises (SMEs) in Bosnia and Herzegovina. The hypothesis predicts a positive relationship between the hours worked and the transitory changes in wages. We tested the hypothesis using the data on...
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these channels, we conduct laboratory consumption/saving experiments. A novel feature of our experiments is that we tie them … to a real-effort style task. In four treatments, we turn on and off the two channels for consumption smoothing: saving … consumption; (iv) saving and time shifting are substitutes, though not perfect substitutes. …
Persistent link: https://www.econbiz.de/10012195562
We consider a broad class of intertemporal economic problems and we characterize the short and long-run response of the demand for a good to a permanent increase in its market price. Depending on the interplay between self-productivity and time discounting, we show that dynamic substitution...
Persistent link: https://www.econbiz.de/10012219510
these channels, we conduct laboratory consumption/saving experiments. A novel feature of our experiments is that we tie them … to a real-effort style task. In four treatments, we turn on and off the two channels for consumption smoothing: saving … consumption; (iv) saving and time shifting are substitutes, though not perfect substitutes. …
Persistent link: https://www.econbiz.de/10012175734
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We develop a model of the household in which spousal incomes are determined by pre-marital investments, the marriage market is characterized by assortative matching, and endogenously-determined sharing rules form the basis of intra-household allocations. By incorporating pre-marital investments...
Persistent link: https://www.econbiz.de/10003115139
A model is presented where workers of differing abilities and from different social backgrounds are assigned to jobs based on grades received at school. It is examined how this matching is affected if good grades are granted to some low ability students. Such grade inflation is shown to reduce...
Persistent link: https://www.econbiz.de/10014214686