Working paper
Flexible labour, income e?ects, and asset prices
- Abstract:
- This paper studies how ?exible labour decisions a?ect asset pricing in a Real Business Cycle model. It uses Jaimovich-Rebelo preferences with internal habits in consumption and distinguishes between two income effect channels (i) the 'habit income e?ect' channel and (ii) the 'separability income e?ect' channel. I ?nd that asset prices are superior when the ?rst channel is strong and the second is weak, this is the case of using GHH preferences with internal habits in consumption.
- Publication status:
- Published
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Authors
- Publisher:
- University of Oxford
- Series:
- Department of Economics Discussion Paper Series
- Publication date:
- 2018-05-31
- Paper number:
- 851
- Keywords:
- Pubs id:
-
1143531
- Local pid:
-
pubs:1143531
- Deposit date:
-
2020-12-14
Terms of use
- Copyright date:
- 2018
- Rights statement:
- Copyright 2018 The Author(s)
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