|
The Joint Allocation of Leisure and Goods Expenditure
William A. Barnett
Abstract
Conventionally labor supply modeling has been dichotomized from consumption expenditure allocation. We estimate a model unifying both aspects of the consumer's decision problem, and we test for the two-stage decision implied by the conventional dichotomy. We investigate the gains from joint modeling. We use a version of the Rotterdam model recently shown by Barnett [6] to be derivable at the aggregate level under weaker assumptions than those needed to acquire empirically usable theoretical results at the aggregate level with other models; our results are not subject to the restrictiveness imputed to earlier uses of versions of the Rotterdam model.
|
