Household Labour Supply with Quantity Constraints
When household demand functions are estimated, it is customary and convenient to assume that individual agents can purchase the desired quantities of leisure or commodities at fixed prices. The possibility that the labour market, or other markets, might operate in such a way as to impose quantity constraints on the purchases of a household is thus ruled out.
KeywordsDemand Function Marginal Utility Unemployment Spell Fixed Individual Effect Involuntary Unemployment
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