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Testing for Separability between Commodity Demand and Labour Supply in West Germany

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  • Kaiser, Helmut

Abstract

In this paper we use a methodology for testing for separability of commodity demands from male and female labor supply on a single cross section. In the empirical section of our paper we apply the methodology to a representative micro data base for West Germany. We estimate the corresponding demand systems for nine goods, analyze their economic properties and test the hypothesis that male and female leisure are separable from commodity demand. We reject the hypothesis that goods are separable from male and female time. Moreover, we show the implications of our results for optimal taxation of goods and labor supply.

Suggested Citation

  • Kaiser, Helmut, 1993. "Testing for Separability between Commodity Demand and Labour Supply in West Germany," Empirical Economics, Springer, vol. 18(1), pages 21-56.
    • Handle: RePEc:spr:empeco:v:18:y:1993:i:1:p:21-56
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    Cited by:

    1. Silvia Platoni & Francesco Timpano, 2013. "Redistribution and Tax Evasion: an Asymmetric Information Approach," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1394, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Aylit Tina Romm, 2017. "Retirement date effects on saving behavior: Endogenous labor supply and non-separable preferences," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(3), pages 327-346, September.
    3. Nicol, C. J., 2003. "Elasticities of demand for gasoline in Canada and the United States," Energy Economics, Elsevier, vol. 25(2), pages 201-214, March.

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