TY  - JOUR
AU  - Holtz-Eakin,Douglas
AU  - Rosen,Harvey S.
TI  - Municipal Labor Demand in the Presence of Uncertainty:  An Econometric Approach
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3516
PY  - 1991
Y2  - October 1991
UR  - http://www.nber.org/papers/w3516
L1  - http://www.nber.org/papers/w3516.pdf
N1  - Author contact info:
Douglas Holtz-Eakin
American Action Forum
1401 New York Ave, NW
Suite 1200
Washington, DC 20005
E-Mail: dholtzeakin@americanactionforum.org

Harvey S. Rosen
Department of Economics
Fisher Hall
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-4022
Fax: 609/258-6419
E-Mail: HSR@princeton.edu
AB  - 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.
ER  -