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elasticities implied by the substitution elasticity in households' utility functions and derive labour demand elasticities from the … substitution elasticity in the production function …
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A body of recent empirical work has found strong evidence that the labor elasticity of supply to the firm is finite … inter-war period, we are able to estimate the elasticity of supply to the firm during several recessions and expansions. Our … analysis suggests that the elasticity is indeed lower during recessions, consistent with the comparative statics from the …
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