Putting Home Economics into Macroeconomics (2001)
Jeremy Greenwood, Richard Rogerson, Randall Wright
This paper surveys the role of household production in modern business cycle analysis.
A note on labor contracts with private information and household production
Ed Nosal, Richard Rogerson, Randall Wright
A classic result in the theory of implicit contract models with asymmetric information is that “underemployment” results if and only if leisure is an inferior good. We introduce household...
Homework in macroeconomics: household production and aggregate fluctuations
Jess Benhabib, Richard Rogerson, Randall Wright
This paper explores some macroeconomic implications of including household production in an otherwise standard real business cycle model. We calibrate the model based on microeconomic evidence and...
Household production and taxation in the stochastic growth model
Ellen McGrattan, Richard Rogerson, Randall Wright
We estimate a dynamic general equilibrium model of the U.S. economy that includes an explicit household production sector. We use these estimates to investigate two issues. First, we analyze how well...
On the political economy of education subsidies
Raquel Fernandez, Richard Rogerson
Standard models of public education provision predict an implicit transfer of resources from higher income individuals toward lower income individuals. Many studies have documented that public higher...
Estimating substitution elasticities in household production models
Peter Rupert, Richard Rogerson, Randall Wright
Dynamic general equilibrium models that include explicit household production sectors provide a useful framework within which to analyze a variety of macroeconomic issues. However, some implications...
An equilibrium model of the business cycle with household production and fiscal policy
Ellen McGrattan, Richard Rogerson, Randall Wright
We estimate a dynamic general equilibrium model of the U.S. economy that includes an explicit household production sector and stochastic fiscal variables. We use our estimates to investigate two...
Sectoral Shocks, Specific Human Capital and Displaced Workers
This paper extends the Lucas-Prescott island economy to allow for finite lived agents and sector specific human capital. Unlike the Lucas-Prescott model in which workers who leave declining sectors...
The Food Problem and the Evolution of International Income Levels
Douglas Gollin, Stephen L. Parente, Richard Rogerson
This paper examines the effect of agricultural development on a country's overall development and growth experience. In most poor countries, large fractions of land, labor, and other productive...
Risk Sharing, Indivisible Labor and Aggregate Fluctuations.
This paper studies fluctuations in a real business cycle model when there is a risk neutral agent present to offer insurance to workers. This economy is compared with one in which there is no risk...
Job Turnover and Policy Evaluation: A General Equilibrium Analysis.
Hopenhayn, Hugo, Rogerson, Richard
Recent empirical work indicates that job creation and destruction rates are large, implying significant amounts of job reallocation across firms. This paper builds a general equilibrium model of this...
Can the Mortensen-Pissarides Matching Model Match the Business-Cycle Facts?
Cole, Harold L, Rogerson, Richard
We examine whether the Mortensen-Pissarides matching model can account for the business-cycle facts on employment, job creation, and job destruction. A novel feature of our analysis is its emphasis...
Homework in Development Economics: Household Production and the Wealth of Nations
Stephen L. Parente, Richard Rogerson, Randall Wright
We introduce home production into the neoclassical growth model and examine its consequences for development economics. In particular, we study the extent to which one can account for international...
Equity and Resources: An Analysis of Education Finance Systems
Raquel Fernandez, Richard Rogerson
We analyze five education finance systems: local, state, foundation, power equalizing with recapture (PER), and power equalizing without recapture (PEN). In a calibrated model, we find that finance...
Zoning and the Political Economy of Local Redistribution
Raquel Fernandez, Richard Rogerson
This paper examines the effects of a zoning regulation on local redistribution in a multicommunity model. Each community chooses, by majority vote within the community, a property tax rate. The...
Can the Mortonson-Pissarides matching model match the business cycle facts?
Harold L. Cole, Richard Rogerson
We examine whether the Mortensen-Pissarides matching model can account for the business cycle facts on employment, job creation, and job destruction. A novel feature of our analysis is its emphasis...
Two Views on the Deterioration of European Labor Market Outcomes
This paper challenges the consensus view on the deterioration of European labor market outcomes relative to the United States. When looking at employment to population ratios rather than unemployment...
Understanding Differences in Hours Worked
This paper documents the large differences in hours of work across OECD countries and shows how these differences have evolved over time. It argues that changes in technology and government can...
Putting home economics into macroeconomics
Jeremy Greenwood, Richard Rogerson, Randall Wright
The implications of adding household production to an otherwise standard real business cycle model are explored in this article. The model developed treats the business and household sectors...
Changes in hours worked since 1950
Ellen R. McGrattan, Richard Rogerson
Changes in hours worked since 1950; This article describes changes in the number of average weekly hours of market work per person in the United States since World War II. Overall, this number has...
Changes in hours worked, 1950?2000
Ellen R. McGrattan, Richard Rogerson
This article describes changes in the number of average weekly hours of market work per person in the United States since World War II. Overall, this number has been roughly constant; for various...
Structural Transformation and the Deterioration of European Labor Market Outcomes
This paper examines the evolution of hours worked in France, Germany, Italy and the US from 1956-2003 and assesses the role of taxes and technology to account for the differences. The empirical work...
Taxation and Market Work: Is Scandinavia an Outlier?
This paper argues that it is essential to explicitly consider how the government spends tax revenues when assessing the effects of tax rates on aggregate hours of market work. Different forms of...
Product Market Regulation and Market Work: A Benchmark Analysis
Recent empirical work finds a negative correlation between product market regulation and aggregate employment. We examine the effect of product market regulations on hours worked in a benchmark...
Policy Distortions and Aggregate Productivity with Heterogeneous Plants
Diego Restuccia, Richard Rogerson
We formulate a version of the growth model in which production is carried out by heterogeneous plants and calibrate it to US data. In the context of this model we argue that differences in the...
Policy Analysis in a Matching Model with Intensive and Extensive Margins
The large differences in hours of work across industrialized countries reflect large differences in both employment to population ratios and hours per worker. We imbed the canonical model of labor...
Lifetime aggregate labor supply with endogenous workweek length
Edward C. Prescott, Richard Rogerson, Johanna Wallenius
This paper studies lifetime aggregate labor supply with endogenous workweek length. Such a theory is needed to evaluate various government policies. A key feature of our model is a nonlinear mapping...
On the Political Economy of Education Subsidies.
Fernandez, Raquel, Rogerson, Richard
Standard models of public education provision predict an implicit transfer of resources from higher-income individuals toward lower-income individuals. Many studies have documented that public higher...
Search-Theoretic Models of the Labor Market: A Survey
Richard Rogerson, Robert Shimer, Randall Wright
We survey the literature on search-theoretic models of the labor market. We show how this approach addresses many issues, including the following: Why do workers sometimes choose to remain...
Theory Ahead of Language in the Economics of Unemployment.
This paper discusses, from the perspective of modern theories of unemployment, several unemployment concepts that have been used over the years. It argues that many of these concepts are of limited...
Household production and development
Stephen L. Parente, Richard Rogerson, Randall Wright
The authors introduce home production into the neoclassical growth model and examine its consequences for development economics. They focus on how well differences in policies that distort capital...
The employment of nations — a primer
This paper examines low-frequency movements in employment in a cross-section of industrialized countries for the period 1960–95, using both aggregate and disaggregated data. It documents nine...
An Equilibrium Model of the Business Cycle with Household Production and Fiscal Policy.
McGrattan, Ellen R, Rogerson, Richard, Wright, Randall
The authors estimate a dynamic general equilibrium model of the U.S. economy that includes an explicit household production sector and stochastic fiscal variables. They use their estimates to...
Recursive Competitive Equilibrium in Multi-sector Economies.
This paper extends the theory of recursive competitive equilibrium developed by Mehra and Prescott (1980) to a class of multisector economies in which mobility is costly. By introducing l otteries...
The macroeconomic transition to high household debt - comments
Finance, Personal ; Households - Economic aspects
Changes in the distribution of family hours worked since 1950
Ellen R. McGrattan, Richard Rogerson
This paper describes trends in average weekly hours of market work per person and per family in the United States between 1950 and 2005. We disaggregate married couple households by skill level to...
Farm Work, Home Work, and International Productivity Differences
Douglas Gollin, Stephen L. Parente, Richard Rogerson
Agriculture's share of economic activity is known to vary inversely with a country's level of development. This paper examines whether extensions of the neoclassical growth model can account for some...
Work and taxes: allocation of time in OECD countries
Lee Ohanian, Andrea Raffo, Richard Rogerson
Policymakers devote a great deal of attention to short-run fluctuations in the labor market. Central banks monitor indicators of labor market tightness in the conduct of monetary policy due to the...
The Role of Household Production in Models of Involuntary Unemployment and Underemployment.
Ed Nosal, Richard Rogerson, Randall Wright
A classic result in the theory of labor contracts with asymmetric information is that underemployment results if and only if leisure is an inferior good. A classic result in models where unemployment...
Fernandez, Raquel, Rogerson, Richard
Many states are implementing school-finance reforms which will have complex effects on income distribution, intergenerational income mobility, and welfare. This paper analyzes the static and dynamic...
Sorting and Long-Run Inequality
Fernández, Raquel, Rogerson, Richard
Many social commentators have raised concerns over the possibility that increased sorting in a society can lead to greater inequality. To investigate this we construct a dynamic model of...
Keeping People Out: Income Distribution, Zoning, and the Quality of Public Education.
Fernandez, Raquel, Rogerson, Richard
The authors examine the effect of community zoning regulations on allocations and welfare in a two-community model. Individuals choose in which community to live and each community levies a tax,...
Long-term changes in labor supply and taxes: evidence from OECD countries, 1956-2004
Lee Ohanian, Andrea Raffo, Richard Rogerson
We document large differences in trend changes in hours worked across OECD countries over the period 1956-2004. We then assess the extent to which these changes are consistent with the intratemporal...
Labor mobility, unemployment and sectoral shifts: evidence from micro data
Prakash Loungani, Richard Rogerson, Yang-Hoon Sonn
Labor supply ; Unemployment
Organizational dynamics over the business cycle: a view on jobless recoveries
Kathryn Koenders, Richard Rogerson
This paper proposes a new explanation for the apparent slow growth in employment during the past two recoveries. The authors' explanation emphasizes dynamics within growing organizations and the...
The business cycle and the life cycle
Paul Gomme, Richard Rogerson, Peter Rupert, Randall Wright
The paper documents how cyclical fluctuations in market work vary over the life cycle and then assesses the predictions of a life-cycle version of the growth model for those observations. The...
Policy Distortions and Aggregate Productivity with Heterogeneous Plants
Richard Rogerson, Diego Restuccia
We formulate a version of the growth model in which production is carried out by heterogeneous plants and calibrate it to US data. In the context of this model we argue that differences in the...
Structural Transformation and the Labor Market
This paper examines the implications of the process of structural transformation for labor market outcomes
Institutions and Labour Reallocation
Bertola, Giuseppe, Rogerson, Richard
Despite stringent dismissal restrictions in most European countries, rates of job creation and destruction are remarkably similar across European and North American labour markets. This paper shows...
Sorting And Long-Run Inequality
Raquel Fernández, Richard Rogerson
Many social commentators have raised concerns over the possibility that increased sorting in society may lead to greater inequality. To investigate this, we construct a dynamic model of...
Income Distribution, Communities, and the Quality of Public Education.
Fernandez, Raquel, Rogerson, Richard
This paper develops a multicommunity model and analyzes policies that affect spending on public education and its distribution across communities. The authors find that policies that on net increase...
Estimating Substitution Elasticities in Household Production Models.
Rupert, Peter, Rogerson, Richard, Wright, Randall
Dynamic general equilibrium models that include explicit household production sectors provide a useful framework within which to analyze a variety of macroeconomic issues. However, some implications...
HOMEWORK IN MACROECONOMICS I: BASIC THEORY
Benhabib, Jess, Rogerson, Richard, Wright, Randall
macroeconomics ; economic theory ; household
HOMEWORK IN MACROECONOMICS II: AGGREGATE FLUCTUATIONS
Benhabib, Jess, Rogerson, Richard, Wright, Randall
macroeconomics ; business cycles ; productivity
The Determinants of Public Education Expenditures: Evidence from the States, 1950-1990
Fernandez, Raquel, Rogerson, Richard
Education expenditures, education finance
Eudcation Finance Reform and Investment in Human Capital : Lessons from California.
Fernandez, Raquel, Rogerson, Richard
This paper examines the effect of different education financing systems on the level and distribution of resources devoted to public education. We focus on California, which in the 1970's was...
Code for "Policy Distortions and Aggregate Productivity with Heterogeneous Plants"
Diego Restucchia, Richard Rogerson
Three Matlab programs reuired to generate statistics from the model.
Policy Distortions and Aggregate Productivity with Heterogeneous Plants
Diego Restuccia, Richard Rogerson
We formulate a version of the growth model in which production is carried out by heterogeneous establishments and calibrate it to U.S. data. In the context of this model we argue that differences in...
Lifetime Aggregate Labor Supply with Endogenous Workweek Length
Edward C. Prescott, Richard Rogerson, Johanna Wallenius
This paper studies lifetime aggregate labor supply with endogenous workweek length. Such a theory is needed to evaluate various government policies. A key feature of our model is a nonlinear mapping...
Aggregate implications of indivisible labor, incomplete markets, and labor market frictions
Krusell, Per, Mukoyama, Toshihiko, Rogerson, Richard, Sahin, Aysegül
We study the impact of tax and transfer programs on steady-state allocations in a model with search frictions, an operative labor supply margin, and incomplete markets. In a benchmark model that has...
Homework in Macoreconomics I: Basic Theory (Part I of II)
Jess Benhabib, Randall Wright, Richard Rogerson
This paper argues that the home, or nonmarket, sector is empirically large, whether measured in terms of the time devoted to household production activities or in terms of the value of home produced...
Human Capital Accumulation and Income Distribution
Raquel Fernandez, Richard Rogerson
The non-existence of credit markets implies that initial income is a determinant of who actually obtains an education. We consider the outcome of a process in which income is taxed to provide...
Income Distribution, Communities and the Quality of Public Education: A Policy Analysis
Raquel Fernandez, Richard Rogerson
This paper analyzes within the context of a multicommunity model the effects of several policies that affect the financing of public education. The key features of the model are: (I) individuals...
Keeping People Out: Income Distribution, Zoning and the Quality of Public Education
Raquel Fernandez, Richard Rogerson
This paper examines the effect of community zoning regulations on allocations and welfare in a two-community model. Each community uses a local property tax to finance public education. Tax rates are...
Income Distribution and Public Education: A Dynamic Quantitative Evaluation of School Finance Reform
Raquel Fernandez, Richard Rogerson
Many states have or are considering implementing school finance reforms aimed at lessening inequality in the provision of public education across communities. These reforms will tend to have...
Education Finance Reform and Investment in Human Capital: Lessons from California
Raquel Fernandez, Richard Rogerson
This paper examines the effect of different education financing systems on the level and distribution of resources devoted to public education. We focus on California, which in the 1970's moved from...
Institutions and Labor Reallocation
Giuseppe Bertola, Richard Rogerson
Despite stringent dismissal restrictions in most European countries, rates of job creation and destruction are remarkably similar across European and North American labor markets. This paper shows...
The Determinants of Public Education Expenditures: Evidence from the States, 1950-1990
Raquel Fernandez, Richard Rogerson
We examine a panel data set for the US states over the period 1950-1990 and use it to assess the effects of growth in personal income and number of students on expenditure on public primary and...
Equity and Resources: An Analysis of Education Finance Systems
Raquel Fernandez, Richard Rogerson
Over the last few decades many US states have made large changes to their systems of financing K-12 education with the explicit objective of providing more equitable educational opportunities. There...
Sorting and Long-Run Inequality
Raquel Fernandez, Richard Rogerson
Many social commentators have raised concerns over the possibility that increased sorting in a society can lead to greater inequality. To investigate this we construct a dynamic model of...
Search-Theoretic Models of the Labor Market-A Survey
Richard Rogerson, Robert Shimer, Randall Wright
We survey search-theoretic models of the labor market and discuss their usefulness for analyzing labor market dynamics, job turnover, and wages. We first examine single-agent models, showing how they...
Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004
Lee Ohanian, Andrea Raffo, Richard Rogerson
We document large differences in trend changes in hours worked across OECD countries over the period 1956-2004. We then assess the extent to which these changes are consistent with the intratemporal...
Policy Distortions and Aggregate Productivity with Heterogeneous Plants
Diego Restuccia, Richard Rogerson
We formulate a version of the growth model in which production is carried out by heterogeneous plants and calibrate it to US data. In the context of this model we argue that differences in the...
Micro and Macro Elasticities in a Life Cycle Model With Taxes
Richard Rogerson, Johanna Wallenius
We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on...
Aggregate Implications of Indivisible Labor, Incomplete Markets, and Labor Market Frictions
Per Krusell, Toshihiko Mukoyama, Richard Rogerson, Aysegul Sahin
This paper analyzes a model that features frictions, an operative labor supply margin, and incomplete markets. We first provide analytic solutions to a benchmark model that includes indivisible labor...
Labor Market Fluctuations in the Small and in the Large
Richard Rogerson, Lodewijk P. Visschers, Randall Wright
Shimer's calibrated version of the Mortensen-Pissarides model generates unemployment fluctuates much smaller than the data. Hagedorn and Manovskii present an alternative calibration that yields...