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Alternative Approaches to Discrete Working Time Choice in an AGE Framework

Diskussionspapiere extern

Melanie Arntz, Stefan Boeters, Nicole Gürtzgen

Mannheim: Centre for European Economic Research, 2005,
(ZEW Discussion Paper No. 05-62)

Abstract

We compare two options of integrating discrete working time choice of heterogenous households into a general equilibrium model. The first, known from the literature, produces household heterogeneity through a working time preference parameter. We contrast this with a model that directly incorporates a logit discrete-choice approach into a AGE framework. On the grounds of both calibration consistency and adequate accomodation of within-household interaction, we argue that the logit approach is preferable.



Keywords: applied general equilibrium, discrete working time choice, labour market, wage bargaining, labour market reform, logit model
Externer Link:
ftp://ftp.zew.de/pub/zew-docs/dp/dp0562.pdf

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