elasticity of labor supply to the wage elasticity and (2) the degree of complementarity between consumption and labor. I bound … the degree of complementarity using data on consumption choices when labor supply varies randomly across states. Using … labor supply elasticity estimates from thirty-three studies, I find a mean estimate of g = 1. I then show that generating g …

elasticity of labor supply to the wage elasticity and (2) the degree of complementarity between consumption and labor. I bound … the degree of complementarity using data on consumption choices when labor supply varies randomly across states. Using … labor supply elasticity estimates from thirty-three studies, I find a mean estimate of g = 1. I then show that generating g …

Carroll and Kimball (1996) show that the consumption function for an agent with time-separable, isoelastic preferences … always exists a distribution of income risk such that consumption function is not concave in wealth. I also derive suffi … cient conditions guaranteeing that the consumption function is concave if the agent has preferences for late resolution of …