TR
EN
THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS' BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL
Öz
Decisions made by households and society with regard to the economy are heavily influenced by the role and significance of the variables of discount factor and Frisch elasticity of labor supply, on capital formation and consumption, which are among the most significant sources of interest rate, consumption basket, and household leisure. The existence of the endogenous discount factor and the Frisch elasticity of labor supply, which demonstrate the patience of society with regard to consumption and the choice of the household's work-and-leisure mix, respectively, point to significant changes in the household's decisions that may influence the portfolio of consumption and leisure. In order to develop a DSGE model utilizing data from the Iranian economy for the years 1998 to 2020, this article explores the effects of two variables, the endogenous discount factor and Frisch's elasticity, on macroeconomic variables and household performance. The findings show that in a model with an endogenous discount component and a lower value of Frisch's elasticity, the effect of the technological shock on consumption, output, and household income variables is positive and more significant, but it is negative on the debt variable. Thus, it can be said that in general, given that the household is sensitive to the type of discount factor and the extent of the labor supply's Frisch elasticity and that these two factors are crucial in helping the household decide which purchases and activities to include in its basket of leisure activities in order to change its expected utility, an increase in Frisch's elasticity coefficient along with the endogenous discount factor in the household will change its expected utility. Additionally, this road has evolved into the best one for household decisions, and in the best distribution of resources, households place a higher value on leisure and self-importance.
Anahtar Kelimeler
Kaynakça
- Accolley, D. (2016). Accounting For Business Cycles in Canada: I. The Role of Supply-Side Factors. MPRA Paper 69856, University Library of Munich, Germany.
- Algoskoufis, G.S. (1987). On Intertemporal Substitution and Aggregate Labor Supply. Journal of Political Economy, 95 (5), 938–960.
- Altonji, J.G. (1982). The Intertemporal Substitution Model of Labor Market Fluctuations: An Empirical Analysis. The Review of Economic Studies. 49(5), 783–824.
- Altonji, J. G. (1986). Intertemporal Substitution in Labor Supply: Evidence from Micro Data. The Journal of Political Economy, 94 (3-2), 176-215.
- Becker, G. S., & Mulligan, C. B. (1997). The Endogenous Determination of Time Preference. Quarterly Journal of Economics, 112, 729–758.
- Bergman, Y.A. (1985). Time Preference and Capital Asset Pricing Models. Journal of Financial Economics, 14, 145-159.
- Browning, M., Deaton, A. & Irish, M. (1985). A Profitable Approach to Labor Supply and Commodity Demands Over the Life-Cycle. Econometrica, 53 (3), 503–544.
- Fisher, I. (1930). The theory of interest, New York: Macmillan.
Ayrıntılar
Birincil Dil
İngilizce
Konular
Ekonomi
Bölüm
Araştırma Makalesi
Yazarlar
Yayımlanma Tarihi
26 Aralık 2022
Gönderilme Tarihi
8 Mart 2022
Kabul Tarihi
15 Kasım 2022
Yayımlandığı Sayı
Yıl 2022 Cilt: 12 Sayı: 3
APA
İzadi, H. (2022). THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 12(3), 251-267. https://doi.org/10.18074/ckuiibfd.1084401
AMA
1.İzadi H. THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 2022;12(3):251-267. doi:10.18074/ckuiibfd.1084401
Chicago
İzadi, Hamidreza. 2022. “THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL”. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 12 (3): 251-67. https://doi.org/10.18074/ckuiibfd.1084401.
EndNote
İzadi H (01 Aralık 2022) THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 12 3 251–267.
IEEE
[1]H. İzadi, “THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL”, Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, c. 12, sy 3, ss. 251–267, Ara. 2022, doi: 10.18074/ckuiibfd.1084401.
ISNAD
İzadi, Hamidreza. “THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL”. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 12/3 (01 Aralık 2022): 251-267. https://doi.org/10.18074/ckuiibfd.1084401.
JAMA
1.İzadi H. THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 2022;12:251–267.
MLA
İzadi, Hamidreza. “THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL”. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, c. 12, sy 3, Aralık 2022, ss. 251-67, doi:10.18074/ckuiibfd.1084401.
Vancouver
1.Hamidreza İzadi. THE ROLE OF THE FRISCH ELASTICITY ON HOUSEHOLDS’ BEHAVIOR USING THE ENDOGENOUS DISCOUNT FACTOR MODEL. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 01 Aralık 2022;12(3):251-67. doi:10.18074/ckuiibfd.1084401
Cited By
Is the Friedman rule established in the Iran's economy?
Journal of Money and Economy
https://doi.org/10.61882/jme.19.4.539