This paper explores time use as a possible contributor to income inequality. Productive time is modeled as the complement to a model of sleep that incorporates the biological necessity of sleep within a dynamic choice framework. Our empirical application uses the quasi-exogenous variation in...

This paper examines the contributions of various factors to China's economic growth. The methodology is discussed in papers by Levine and Renelt (1992) and Sala-i-Martin (1997). Using multiple imputation techniques on a panel data from 1978 to 1999 for 30 provinces, autonomous regions, and...

This paper shows that a two-tiered production structure with both traded and non-traded intermediate goods and non-traded final goods can generate a cost of capital adjustment that is very similar to the quadratic adjustment cost often assumed in single good macroeconomic models. This implies...

Economists have long investigated the cyclical behavior of real wages in order to draw inferences regarding the relative stickiness of prices and wages. Recent studies have adopted techniques intended to identify monetary shocks and examined the response of real wages and output or employment to...

Purpose – The purpose of this paper is to explain the following stylized facts. First, the share of household production in total output has fallen over time as the economy has grown. Second, services as a percent of GDP have risen at the same time. Design/methodology/approach – This paper...

We use a dynamic general equilibrium model to examine hypothetical market reforms in North Korea. We model partial reform, in which producers choose capital allocations across sectors, with the government still fixing total capital. We also consider two full market reform scenarios. In one,...

Constructing bootstrap confidence intervals for impulse response functions (IRFs) from structural vector autoregression (SVAR) models has become standard practice in empirical macroeconomic research. The accuracy of such confidence intervals can deteriorate severely, however, if the bootstrap...

Purpose: The purpose of this paper is to infer the welfare of heterogeneous agents using a representative agent model. Design/methodology/approach: It does so by partitioning the household into subunits and allocating consumption to each subunit proportionally to the income the subunit...

Utility functions that are additively-separable in goods consumption and leisure are often used in dynamic stochastic general equilibrium (DSGE) models. This paper illustrates how the use of an elliptical functional form for the utility of leisure can be substituted for the more common constant...