Citation Context

...people employed, rather than in hours per person. At the start of the period, each household in the family draws a privately observed idiosyncratic shock, l, from a uniform distribution with support, =-=[0, 1]-=- .14 The random variable, l, determines the household’s utility cost of working: F + ς t (1 + σL) lσL. (2.3) The parameters, ςt, σL ≥ 0 and F are common to all households. The object, ς t, is potentia...