Frisch elasticity of labor supply

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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, the Frisch elasticity measures the substitution effect of a change in the wage rate on labor supply.[1]

It is named after the economist Ragnar Frisch.

Under certain circumstances, a constant marginal utility of wealth implies a constant marginal utility of consumption.

See also[edit]

References[edit]

  1. ^ Heer, Burkhard; Alfred Maussner (2005). Dynamic General Equilibrium Modelling. Springer. p. 192. ISBN 978-3-540-22095-4.