Straight time and overtime in equilibrium

Gary D. Hansen, Thomas J. Sargent

    Research output: Contribution to journalArticle

    Abstract

    We formulate an equilibrium model of straight time and overtime wages by imposing restrictions on agents' consumption sets and using a commodity space that includes employment lotteries. We extract some time series implications from a linear-quadratic approximation to our model evaluated at particular parameter values. We use our model informally to interpret some features of observed time series for wages and employment.

    Original languageEnglish (US)
    Pages (from-to)281-308
    Number of pages28
    JournalJournal of Monetary Economics
    Volume21
    Issue number2-3
    DOIs
    StatePublished - Jan 1 1988

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    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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