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The Labor Market in Real Business Cycle Theory

Опубликовано на портале: 05-10-2004
Federal Reserve Bank of Minneapolis Quarterly Review. 1992.  Vol. 16. No. 2.
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.

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