Analyzing labor supply behavior with latent job opportunity sets and institutional choice constraints.

In this paper we discuss a general framework for analyzing labor supply behavior in the presence of complicated budget- and quantity constraints of which some may be unobservable. The point of departure is that an individual's labor supply decision can be considered as a choice from a set of discrete alternatives (jobs). These jobs are characterized by attributes such as hours of work, sector specific wages and other sector specific aspects of the jobs. We focus in particular on theoretical justification of functional form assumptions and properties of the random components of the model. The paper also includes an empirical application based on Norwegian data, in which the labor supply of married women is estimated.Labor supply; non-convex budget sets; non-pecuniary job-attributes; sector-specific wages

Compensated discrete choice and the Slutsky equation

Consumers often face choice settings in which alternatives are discrete. Examples include choices between variants of differentiated products, modes of urban transportation, residential locations, etc. In this paper compensated price elasticities and a corresponding (aggregate) Slutsky equation for discrete choice models are derived. A remarkable feature of compensated price elasticities in the discrete case is that they usually are not symmetric, as compensated elasticities with respect to a price increase versus a price decrease may be different. Finally, compensated marginal price effects and elasticities are derived for selected examples.Part of this research has had financial support from the Research Council of Norway (the tax research program) and the Frisch Centre for Economic Research

Aggregate marginal costs of public funds

In this paper, we discuss aggregate measures of marginal costs of public funds (MCF) in populations that are heterogeneous with respect to observed as well as unobserved characteristics. We first discuss how to compute MCF in selected examples of traditional (textbook) labour supply models. Next, we review two types of discrete labour supply models proposed in the literature. Subsequently, we discuss how to calculate aggregate measures of MCF for discrete labour supply models. Finally, we apply an estimated two-sector discrete labour supply model to compute MCF based on Norwegian data

A labor supply model for married couples with non-convex budget sets and latent rationing

The basic assumption in this paper is that individuals make their choices from a set of latent discrete alternatives, called matches. Given the match, hours of work, wages and non-pecuniary characteristics follow. This model allows for very general budget specifications as well as restrictions on job opportunities and hours of work. The model is estimated on Norwegian data from 1979. Some of the results are summarized in wage elasticities and it is demonstrated that they are in the range of what others have obtained. Moreover, aggregate elasticities Which reflect observed as well as unobserved heterogeneity are calculated. We also report estimates derived from alternative specifications of the budget set, ranging from ignorance of taxes at all to a detailed specification of all sorts of taxes and transfers. The results of tax policy simulations are included in the final section of the paper

Aggregate marginal costs of public funds

In this paper, we discuss aggregate measures of marginal costs of public funds (MCF) in populations that are heterogeneous with respect to observed as well as unobserved characteristics. We first discuss how to compute MCF in selected examples of traditional (textbook) labour supply models. Next, we review two types of discrete labour supply models proposed in the literature. Subsequently, we discuss how to calculate aggregate measures of MCF for discrete labour supply models. Finally, we apply an estimated two-sector discrete labour supply model to compute MCF based on Norwegian data.publishedVersio

To what extent are temperature levels changing due to greenhouse gas emissions?

Weather and temperatures vary in ways that are difficult to explain and predict precisely. In this article we review data on temperature variations in the past as well possible reasons for these variations. Subsequently, we review key properties of global climate models and statistical analyses conducted by others on the ability of the global climate models to track historical temperatures. These tests show that standard climate models are rejected by time series data on global temperatures. Finally, we update and extend previous statistical analysis of temperature data (Dagsvik et al., 2020). Using theoretical arguments and statistical tests we find, as in Dagsvik et al. (2020), that the effect of man-made CO2 emissions does not appear to be strong enough to cause systematic changes in the temperature fluctuations during the last 200 years

Theoretical and Practical Arguments for Modeling Labor Supply as a Choice among Latent Jobs

Models of labor supply derived from stochastic utility representations and discretized sets of feasible hours of work have gained popularity because they are more practical than the standard approaches based on marginal calculus. In this paper we argue that practicality is not the only feature that can be addressed by means of stochastic choice theory. This theory also offers a powerful framework for developing a more realistic model for labor supply choices, founded on individuals having preferences over jobs and facing restrictions on the choice of jobs and hours of work. We discuss and clarify how this modeling framework deviates from both the conventional discrete approach (Van Soest, 1995), as well as the standard textbook approach based on marginal calculus (Hausman, 1985). It is argued that a model based on job choice opens up for a more realistic representation of the choice environment, and consequently offers the possibility of conducting a richer set of simulations of alternative policies.labor supply, random utility models, tax reform

Econometric analysis of labor supply in a life cycle context with uncertainty

Discussion Papers / Central Bureau of Statistics. Dette er en gratis nettressurs Elektronisk reproduksjonThe paper considers a recent econometric approach for analysing labor supply in a life cycle context. The model we present extends MaCurdy's (1982) model in that the wage rate is assumed to depend on previous labor market experience. Our data gives, however, no support to this hypothesis. The empirical results reported should be interpreted with caution because observations on hours worked may be seriously biased and the wage rates are only observed in one period

Kvalitetsjusterte prisindekser for biler : en oversikt over metodiske tilnærminger

Økonomiske analyser er tilgjengelige via www.ssb.noI de senere årene har det vært økende fokus på produkters «kvalitet» i konstruksjonen av prisindekser. Det er imidlertid ikke opplagt hvordan kvalitetsaspektet skal gripes an. På 1980-og 90 tallet ble det utviklet nye metoder for konstruksjon av prisindekser som tar hensyn til kvalitetsaspektet. Denne artikkelen gir en oversikt over metoder det eksperimenteres med i Statistisk sentralbyrå, og som er benyttet til å beregne prisindekser for biler. Det vises at metodevalg kan ha stor betydning for mål på prisutviklingen. Veksten i konsumprisindeksen ville i gjennomsnitt ha blitt redusert med et kvart prosentpoeng årlig i perioden 1994- 2002 dersom en brukte prisindekser som tar hensyn til kvalitetsforbedringer for nye biler

Axiomatization of stochastic models for choice under uncertainty

Abstracts with downloadable Discussion Papers in PDF are available on the Internet: http://www.ssb.noAbstract: This paper develops a theory of probabilistic models for risky choices. Part of this theory can be viewed as an extension of the expected utility theory to account for bounded rationality. One probabilistic version of the Archimedean Axiom and two versions of the Independence Axiom are proposed. In addition, additional axioms are proposed of which one is Luce’s Independence from Irrelevant Alternatives. It is demonstrated that different combinations of the axioms yield different characterizations of the probabilities for choosing the respective risky prospects. An interesting feature of the models developed is that they allow for violations of the expected utility theory known as the common consequence effect and the common ratio effect. Keywords: Random tastes, bounded rationality, independence from irrelevant alternatives, probabilistic choice among lotteries, Allais paradox