Income and Substitution Effects in Labor Economics: Difference between revisions

Latest revision as of 07:54, 4 May 2006

Man is so made that he can only find relaxation from one kind of labor by taking up another.

Anatole France, The Crime of Sylvestre Bonnard

French novelist (1844 - 1924)

I like work: it fascinates me. I can sit and look at it for hours.

Jerome K. Jerome, "Three Men in a Boat", 1889

British humor writer (1859 - 1927)

Authors: Anastasov, Milen Gencheva, Eva Ross, Benjamin

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-==Opportunity Cost of Leisure Time==
-One of the main factors that plays a role when analyzing the income and substitution effects is the opportunity cost of leisure time. The importance that a laborer places on leisure time when compared with the want to increase one's income will play the role in determining, which effect will dominate. If there is greater importance on leisure time, than increased income, the income effect will dominate. If their is greater importance on income than leisure time, substitution effect will dominate.
+''Man is so made that he can only find relaxation from one kind of labor by taking up another.''
+Anatole France, The Crime of Sylvestre Bonnard
+French novelist (1844 - 1924)
+''I like work: it fascinates me. I can sit and look at it for hours.''
+Jerome K. Jerome, "Three Men in a Boat", 1889
+British humor writer (1859 - 1927)<center>[[Image:Grad.gif|thumb|Description]] </center>
+<center>'''Authors:'''</center>
+<center> ''Anastasov, Milen'' </center>
+<center>''Gencheva, Eva'' </center>
+<center>''Ross, Benjamin'' </center>