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| Author: | Blomquist, S. |
| Title: | Estimation methods for male labour supply functions: how to take account of nonlinear taxes |
| Journal: | Journal of Econometrics
1996 : FEB, VOL. 70:2, p. 383-406 |
| Index terms: | LABOUR SUPPLY ESTIMATION MALE WORKERS |
| Language: | eng |
| Abstract: | Nonlinear taxes create econometric difficulties when estimating labor supply functions. One estimation method that tackles these problems accounts for the complete form of the budget constraint and uses the maximum likelihood method to estimate parameters. Another method linearizes budget constraints and uses instrumental variables techniques. Using Monte Carlo simulations the author investigates the small-sample properties of these estimation methods and how they are affected by measurement errors. |
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