NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Municipal Labor Demand in the Presence of Uncertainty: An Econometric Approach

Douglas Holtz-Eakin, Harvey S. Rosen

NBER Working Paper No. 3516 (Also Reprint No. r1620)
Issued in October 1991
NBER Program(s):   PE

We specify a modem of municipal labor demand when resource flows available to the municipality are not known with certainty. The model allows us to test the hypothesis that employment decisions are rational in the sense that they incorporate all available information at the time that the decisions are made. We find that for our sample of communities, on the whole one cannot reject the hypothesis that labor demand is consistent with intertemporal utility maximization under uncertainty. However, small and large communities exhibit different behavior. The employment decisions of small communities are consistent with the model, while those of large communities are not.

download in pdf format
   (321 K)

download in djvu format
   (230 K)

email paper

This paper is available as PDF (321 K) or DjVu (230 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3516

Published: Journal of Labor Economics, Vol. 9, No. 3, pp. 276-293, (July 1991).

Users who downloaded this paper also downloaded these:
Rosen and Small w0319 Applied Welfare Economics with Discrete Choice Models
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us