Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/205525
Authors: 
Creedy, John
Kalb, Guyonne
Year of Publication: 
2003
Series/Report no.: 
New Zealand Treasury Working Paper No. 03/20
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
The assumption behind discrete hours labour supply modelling is that utility-maximising individuals choose from a relatively small number of hours levels, rather than being able to vary hours worked continuously. Such models are becoming widely used in view of their substantial advantages, compared with a continuous hours approach, when estimating and their role in tax policy microsimulation. This paper provides an introduction to the basic analytics of discrete hours labour supply modelling. Special attention is given to model specification, maximum likelihood estimation and microsimulation of tax reforms. The analysis is at each stage illustrated by the use of numerical examples.
Subjects: 
Discrete hours labour supply
multinomial logit
maximum likelihood estimation
microsimulation
JEL: 
D10
C15
C25
C50
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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