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29 janvier 2003
- ISIDORE Id: 10670/1.aaf3b6...
- hal: hal-03596961
- SCIENCESPO: 2441/8713
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info:eu-repo/semantics/altIdentifier/hdl/2441/8713
info:eu-repo/semantics/OpenAccess
Mots-clés
Idiosyncratic shocks incomplete markets labor supply D - Microeconomics/D.D5 - General Equilibrium and Disequilibrium/D.D5.D52 - Incomplete Markets D - Microeconomics/D.D5 - General Equilibrium and Disequilibrium/D.D5.D58 - Computable and Other Applied General Equilibrium Models J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J22 - Time Allocation and Labor SupplySujets proches
Public markets Labor force participation Workforce Work force Labor force Labor poolCiter ce document
Albert Marcet et al., « Incomplete Markets, Labor Supply and Capital Accumulation », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.aaf3b6...
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Résumé
We explore the accumulation of capital in the presence of limited insurance against idiosyncratic shocks, borrowing constraints and endogenous labor supply. In the exogenous labor supply case (e.g. Aiyagari 1994, Huggett 1997), the presence of limited insurance increases the demand for savings for precautionary reasons. As a consequence, capital and output are higher under incomplete markets. We show that if labor hours are endogenous, labor supply is likely to be lower under incomplete markets, because those agents who experience a high shock to productivity are ex post richer and they work fewer hours. In some cases, this wealth effect can overcome the “aggregate precautionary savings” and give rise to lower savings and output under incomplete markets.
