scholarly journals Sticky Wage Models and Labor Supply Constraints

2020 ◽  
Vol 12 (3) ◽  
pp. 284-318
Author(s):  
Zhen Huo ◽  
José-Víctor Ríos-Rull
Keyword(s):  
Labor Supply ◽  
Labor Demand ◽  
Demand Side ◽  
Demand And Supply ◽  
Sticky Wages

In sticky wages models (either à la Calvo or à la Rotemberg), labor is solely determined by the demand side. However, a change of circumstances may make labor demand higher than agents’ willingness to work. We find that workers are required to work against their will between 15 percent and 30 percent of the time (with 5 percent wage markup, less with higher markups and in Rotemberg models). Estimating models with the minimum of the demand and supply of labor instead of the demand-determined quantity yields different and unappealing properties. Hence, special attention should be paid to possible violations of the labor supply constraint. (JEL E12, E24, E32, J22, J23, J31, J51)

INDETERMINACY IN A ONE-SECTOR MODEL REVISITED: DEMAND VERSUS SUPPLY-SIDE INDETERMINACY

2009 ◽  
Vol 54 (02) ◽  
pp. 183-196
Author(s):  
NICHOLAS C. S. SIM
Keyword(s):  
Economic Theory ◽  
Labor Supply ◽  
Production Function ◽  
Supply Side ◽  
Demand Side ◽  
Demand And Supply ◽  
Sector Model ◽  
The One ◽  
Versus Supply

This paper explains how indeterminacy in a one-sector model may arise due to externalities in the disutility of labor supply, which is termed as demand-side indeterminacy. This contrasts supply-side indeterminacy that is driven by externalities in the production function as exemplified by Benhabib and Farmer (Journal of Economic Theory, 1994). For the one-sector models considered, I find that indeterminacy arises more easily from the demand than from the supply side. In addition, demand and supply-side indeterminacy generate different cyclical patterns of wages, a feature that is useful for identifying episodes of self-fulfilling prophecies within the two types of indeterminacy.

OPTIMAL EDUCATION IN AN AGE-STRUCTURED MODEL UNDER CHANGING LABOR DEMAND AND SUPPLY

2011 ◽  
Vol 16 (2) ◽  
pp. 159-183 ◽  
Author(s):  
Alexia Prskawetz ◽  
Tsvetomir Tsachev ◽  
Vladimir M. Veliov
Keyword(s):  
Labor Supply ◽  
Educational Policy ◽  
Labor Demand ◽  
Elasticity Of Substitution ◽  
Demand And Supply ◽  
Population Growth Rates ◽  
Long Run ◽  
Age Structured ◽  
Age Structured Model ◽  
Specific Education

We introduce a model of the optimal education policy at the macro level, allowing for heterogeneity of the workforce with respect to its age and qualification skills. Within this framework we study the optimal education rate in the context of changes in labor demand (as represented by the elasticity of substitution across ages and qualification) and labor supply (as represented by a change in the population growth rates). Applying an age-structured optimal-control model, we derive features of the optimal age-specific education rate. Our results show that the relation between the elasticities of substitution of labor across ages plays a crucial role in the way the demographic changes affect (both in the short and in the long run) the optimal educational policy. We also show that under imperfect substitutability across age and qualification groups, the optimal educational policy is adjusted in advance to any change in the labor supply.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

Accounting Labor Market Equilibrium: Explaining and Predicting Changes in Accounting Labor Demand and Supply

2004 ◽  
Author(s):  
Matthew J. Anderson ◽  
Gregory J. Gerard ◽  
Malcolm J. McLelland
Keyword(s):  
Labor Market ◽  
Market Equilibrium ◽  
Labor Demand ◽  
Demand And Supply

MPCs, MPEs, and Multipliers: A Trilemma for New Keynesian Models

2021 ◽  
pp. 1-41
Author(s):  
Adrien Auclert ◽  
Bence Bardóczy ◽  
Matthew Rognlie
Keyword(s):  
Labor Supply ◽  
New Keynesian ◽  
Fiscal Multipliers ◽  
New Keynesian Models ◽  
Sticky Wages

Abstract We show that New Keynesian models with frictionless labor supply face a challenge: given standard parameters, they cannot simultaneously match plausible estimates of marginal propensities to consume (MPCs), marginal propensities to earn (MPEs), and fiscal multipliers. A HANK model with sticky wages provides a solution to this trilemma.

Problems and Holistic Solutions for Agricultural Businesses in Chiang Mai

2019 ◽  
pp. 1-8
Keyword(s):  
Language Skills ◽  
Educational Institutions ◽  
Supply Side ◽  
Demand Side ◽  
Chiang Mai ◽  
Demand And Supply ◽  
Industry Group ◽  
The Government ◽  
Integration Problems ◽  
Production Problems

This research aims to study the problems and find solutions of major agro-industries in Chiang Mai, Thailand. The sample was divided into two parts: The supply side was the government agency, educational institutions and civil society. Demand side was Agro-Industry entrepreneurs. The methodology was focus on meeting the stakeholder debate, and group workshop, the first step of the research was selected the potential agro-industry group to study then in the operating phase, the survey was conducted to analyze and synthesize the problems of agro-industry and find solutions by group meetings in order to present a holistic problem-solving model. This process will provide opportunity for stakeholders and related agencies to collaborate and propose appropriate guidelines for action. The results show that, within demand side, the three most important issues are labor issues, marketing and production problems respectively. While the supply side, the top three issues are the integration problems, lacking of language skills / expertise, and lacking of database. Based on the analysis of both demand and supply side, there is a lack of concrete cooperation from relevant agencies, especially in policy cooperation. Therefore, a policy that responds to the problems of agro-industry is essential for all agencies to focus on and implement concrete measures to address sustainable issues.

scholarly journals Characteristics Analysis of the Heat-to-Power Ratio from the Supply and Demand Sides of Cities in Northern China

Energies ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 242 ◽  
Author(s):  
Shunyong Yin ◽  
Jianjun Xia ◽  
Yi Jiang
Keyword(s):  
Supply And Demand ◽  
Northern China ◽  
Energy System ◽  
Energy Structure ◽  
Supply Side ◽  
Power Ratio ◽  
Demand Side ◽  
Demand And Supply ◽  
Heating Method ◽  
Urban Energy

Combined heat and power (CHP), an efficient heating method with cascades use of energy, accounts for approximately 50% of the heat sources in northern China. Many researchers have made significant efforts to improve its energy efficiency and environmental effects with important achievements. Given that the system produces heat and electricity at the same time, this study focuses on the role of CHP in the holistic urban energy system and points out the mismatch between the demand and supply sides of urban energy systems by using the heat-to-power ratio as a parameter. The calculation method and characteristics of the supply side heat-to-power ratio of eight heating methods and the maximum demand side heat-to-power ratio for 19 cities in northern China are displayed. After the analysis, it is concluded that (1) the maximum demand side heat-to-power ratio in the cities varies from 1.0 to 5.9, which is affected by the location and social, economic, and industrial structures. (2) In most of the cities, with the current energy structure, the demand side heat-to-power ratios are always larger than the supply side heat-to-power ratios. (3) The reduction in heating demand, surplus heat recovery, and the use of a highly efficient electric heating method, such as the heat pump, can help solve the mismatch of the heat-to-power ratio between the demand and supply sides. These conclusions can guide the urban energy planning and system construction.

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