The Intertemporal Substitution Model of Labour Market Fluctuations: An Empirical Analysis
用两种方法检验就业和失业的总体波动能否用市场出清框架下的劳动供给跨期替代来解释，实证结果不支持该模型。
The paper uses two approaches to study whether aggregate fluctuations in employment and unemployment may be explained within a market clearing framework as intertemporal substitution in labour supply. First, log-linear equations for labour supply and unemployment are estimated using a forecasting model to measure wage and price expectations. Second, a utility function is used to derive and estimate an equation for labour supply as a function of the current real wage and consumption. The influence of expected future real wages and interest rates is captured by the consumption variable. The empirical results do not support the intertemporal substitution model.