Quarterly Review 1621

Back to Publication Print

The Labor Market in Real Business Cycle Theory
Gary D. Hansen
Randall Wright
Spring 1992

Abstract

The standard real business cycle model fails to adequately account for two facts found in the U.S. data: the fact that hours worked fluctuate considerably more than productivity and the fact that the correlation between hours worked and productivity is close to zero. In this paper, in a unified framework, the authors describe and analyze four extensions of the standard model, by introducing nonseparable leisure, indivisible labor, government spending, and household production.

 

Download Paper (pdf)( PDF)

Download Paper (ps)( PS)

 
SEARCH    
Featured Items
Related Links

The Region Magazine - Current Issue.