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Wage Determination under Trade Unionism. New York: Macmillan, 1944. Century of Distortions - 51 Feldstein, Martin and Andrew Samwick. ” National Tax Journal. 45(1), March 1992: 1-22. Freeman, Richard B. and James L. Medoff. What Do Unions Do? New York: Basic Books, 1984. Friedman, Milton and Anna Jacobson Schwartz. Monetary Trends in the United States and United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867-1975. Chicago: University of Chicago Press, 1982. Fraker, Thomas, Robert Moffitt, and Douglas Wolf.
Mulligan, Casey B. ” Paper presented at the Joint Invited Session in Econometrics and Economic Theory at the 2001 European Meeting of the Econometric Society. August 2001b. Mulligan, Casey B. and Justin G. Marion. ” Working paper, University of Chicago, August 2000. Owen, John D. Working Hours. Lexington, MA: DC Heath and Company, 1979. Pissarides, Christopher A Equilibrium Unemployment Theory. 2nd edition. MIT Press, 2000. Parkin, Michael. ” in Karl Brunner and Bennett T. McCallum, eds. Money, Cycles, and Exchange Rates: Essays in Honor of Allan H.
My approach is to assume that the equilibrium condition MRS = (1-J)MPL is indeed testable, an assumption consistent with so many models in the literature that have MRS as a stable function of a few aggregate observables. My assumption fails, of course, in models like those of Parkin (1988) or Hall (1997) where there are enough unobserved determinants of preferences. Without direct measures of the causes of market distortions, or of the taste parameters, it is impossible to determine whether a deviation between measured MRS and MPL is due to a distortion or a preference shift.
A Century of Labor-Leisure Distortions by University of Chicago