Frisch elasticity of labor supply
Named after Ragnar Frisch, the Frisch elasticity of labor supply captures the elasticity of hours worked to the wage rate, given a constant marginal utility of wealth. In other words, Frisch elasticity measures the substitution effect of a change in the wage rate on labor supply.
Under certain circumstances, a constant marginal utility of wealth implies a constant marginal utility of consumption.
- Frisch, Ragnar (1932) New Methods of Measuring Marginal Utility. Tübingen: Mohr.
- Frisch, Ragnar (1959) "A complete scheme for computing all direct and cross demand elasticities in a model with many sectors". Econometrica 27:177-96. Jstor
- Heer, Burkhard; Alfred Maussner (2005). Dynamic General Equilibrium Modelling (in English). Springer. p. 192. ISBN 3-540-22095-X. Retrieved 7/1/2009.
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