Determination of employment with wage and price speculation
Virén, Matti (09.08.1984)
Numero
15/84Julkaisija
Bank of Finland
1984
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2023070373818Tiivistelmä
This paper studies whether aggregate fluctuations in employment may be explained within a market clearing framework as intertemporal substitution in labor supply and demand . An intertemporal substitution model for the firm is derived; this model is estimated with a Lucas-Rapping-type supply equation. Empirical results with Finnish data given strong support to this intertemporal substitution model.