Calculates the optimal labor supply
Author: shiroeExecutions: 60
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Enter non-zero, positive values for p, w, k, a, and b.
Enter non-zero, non-negative integers for k, a, and b.
Output the optimal labor supply L (hours).
Enter non-zero, non-negative integers for k, a, and b.
Output the optimal labor supply L (hours).
| Adopted value for p | Price of x assets |
| Adopted value for w | Wage Rate |
| Values adopted for k | Coefficients of the utility function |
| The adopted value for a | Exponent of the utility function |
| The value adopted for b | Exponent of the utility function |
| L | (Time) Working hours (0 or more, 24 or less) |
R6 (2024). 01/31 (Wed) _ "Calculation of Optimal Labor Supply"
keta06, kahen
keta06, kahen
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Consider the utility function u = k(x^a)(24 - L)^b.
x is the consumption quantity of a certain good x, and L is the number of hours worked.
k is a coefficient, and a and b are exponents.
Let p be the price of good x and w be the wage rate.
Assume there is a rational consumer who consumes only good x.
Calculate the optimal labor supply in this case.