Alternative approaches to discrete working time choice in an AGE framework

Melanie Arntz, Stefan Boeters and Nicole Gürtzgen

We compare two options of integrating discrete working time choice of heterogenous households into a general equilibrium model. The first, known from the literature, produces household heterogeneity through a working time preference parameter. We contrast this with a model that directly incorporates a logit discrete-choice approach into a AGE framework. On the grounds of both calibration consistency and adequate accomodation of within-household interaction, we argue that the logit approach is preferable.

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Year of publication:	2005
Other Persons:	Arntz, Melanie (contributor) ; Boeters, Stefan (contributor) ; Gürtzgen, Nicole (contributor)
Publisher:	Mannheim : ZEW Zentrum für Europäische Wirtschaftsforschung
Subject:	Arbeitszeit \| Working time \| Arbeitsangebot \| Labour supply \| Haushaltsökonomik \| Household economics \| Allgemeines Gleichgewicht \| General equilibrium \| Verhandlungstheorie des Lohnes \| Collective bargaining theory \| Arbeitsmarktflexibilität \| Labour market flexibility \| Wirkungsanalyse \| Impact assessment \| Reform \| Schätzung \| Estimation \| Theorie \| Theory \| Deutschland \| Germany \| Logit-Modell \| Logit model \| Arbeitsmarkt