Fun is cheaper and that matters!: Recreation prices and hours worked have both fallen over the last century. We construct a macroeconomic model with general preferences that allows for trending recreation prices, wages, and work hours along a balanced-growth path. Estimating the model using aggregate data from OECD countries, we find that the fall in
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Fun is cheaper and that matters!:
Recreation prices and hours worked have both fallen over the last century. We construct a macroeconomic model with general preferences that allows for trending recreation prices, wages, and work hours along a balanced-growth path. Estimating the model using aggregate data from OECD countries, we find that the fall in recreation prices can explain a large fraction of the decline in hours. We also use our model to show that the diverging prices of the recreation bundles consumed by different demographic groups can account for much of the increase in leisure inequality observed in the United States over the last decades.
That is from a newly published paper by Alexandr Kopytov, Nikolai Roussanov, and Mathieu Taschereau-Dumouchel. It is in the premiere issue of a new journal Journal of Political Economy Macroeconomics.
The post The price of leisure and the demand to work appeared first on Marginal REVOLUTION.
Economics