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

References

• 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

1. ^ Heer, Burkhard; Alfred Maussner (2005) (in English). Dynamic General Equilibrium Modelling. Springer. pp. 192. ISBN 354022095X. http://books.google.co.uk/books?id=WLRZt6GnPn4C&pg=PA192&dq=Frisch+elasticity+of+labour+supply&ei=CDFlScSjGJPqyQTXz4X3Bg&client=firefox-a. Retrieved 7/1/2009.