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dc.contributor.authorReichling, Felix
dc.contributor.authorWhalen, Charles
dc.description.abstractAmong the models that CBO uses to analyze the economic effects of changes in federal fiscal policy is a life-cycle growth model. That model requires an estimate of the responsiveness of the supply of labor to a one-time temporary change in after-tax compensation, which is described by the so-called Frisch elasticity. CBO incorporates into its analyses an estimate of the Frisch elasticity that ranges from 0.27 to 0.53, with a central estimate of 0.40. This paper describes how CBO derived that range from the research literature.
dc.subjectCongressional Budget Office
dc.subjectfiscal policy
dc.subjectlabor supply
dc.subjectFrisch elasticity
dc.subjectafter-tax compensation
dc.titleReview of Estimates of the Frisch Elasticity of Labor Supply
dc.description.legacydownloadsCBO_Estimates_of_the_Frisch_Elasticity.pdf: 1266 downloads, before Oct. 1, 2020.
local.authorAffiliationReichling, Felix: Congressional Budget Office
local.authorAffiliationWhalen, Charles: Congressional Budget Office

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