The Conflict Between Equilibrium and Disequilibrium Theories: The Case of the U.S. Labor Market

Quandt, Richard E.; Rosen, Harvey S.

doi:10.17848/9780880995405

Cited by 14 publications

(2 citation statements)

References 35 publications

(28 reference statements)

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“…However, see Richard E Quandt (1988). and Quandt and Harvey S Rosen (1988). for tests using aggregate data.…”

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confidence: 99%

Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data

Ham¹,

Reilly

2002

American Economic Review

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We present new tests of three theories of the labor market: intertemporal substitution, hours restrictions, and implicit contracts. The intertemporal substitution test we implement is an exclusion test robust to many specification errors and we consistently reject this model. We model hours restrictions as part of an endogenous switching model. We compare the implicit probit equation to an unrestricted probit equation for unemployment and reject the hours restriction model. For the implicit contracts model, we estimate nonseparable within-period labor-supply and consumption equations. We test a cross-equation restriction of the model and cannot reject the implicit contracts model. (JEL E30, J22, J60)

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“…However, see Richard E Quandt (1988). and Quandt and Harvey S Rosen (1988). for tests using aggregate data.…”

mentioning

confidence: 99%

Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data

Ham¹,

Reilly

2002

American Economic Review

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“…Methods for estimating disequilibrium models have been developed and Quandt (1978), among others, has found ways of testing whether the data conform better to an equilibrium or a dise quilibrium model. (For an excellent survey of some of the issues in volved, see Quandt and Rosen 1988. ) In addition, surveys have been conducted in which firms were asked about their perceived market con straints.…”

Section: (Iv) Other Insightsmentioning

confidence: 99%

Recent Developments in the Theory of Involuntary Unemployment.

Davidson

1993

Industrial and Labor Relations Review

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Simulation-based estimation of models with lagged latent variables

Laroque

Salanié

1993

J. Appl. Econ.

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We extend here our earlier work (Laroque-Salanie, 1989) and propose a dynamic simulated pseudomaximum likelihood method to deal with a very general class of dynamic non-linear models, including models with lagged latent variables. We test this method on Monte Carlo-generated data for a canonical disequilibrium model. It appears to provide very satisfactory estimates at little computational cost. However, accurate estimation of the standard errors of the estimates may require some care in nondifferentiable models.

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The Conflict Between Equilibrium and Disequilibrium Theories: The Case of the U.S. Labor Market

Cited by 14 publications

References 35 publications

Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data

Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data

Recent Developments in the Theory of Involuntary Unemployment.

Simulation-based estimation of models with lagged latent variables

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