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It's this strong belief in the Benchmark model that ties the partnership together, he adds.
This assumption also results in men's and women's utility functions being asymmetric in the benchmark model.
In the benchmark model, men's labor supply is exogenous, while in the extended model, couples take decisions simultaneously.
The coefficients are about 20%% higher than that in the benchmark model, which is considerably less than in models 2 5.
Figure 4 shows the evolution of GDP per working-age person in the data, in the benchmark model, and in the counterfactual model with constant taxes and constant government consumption.
Notice, however, that the benchmark model does a far better job in capturing the decline in hours worked from 1974 to 2015 than the model with constant taxes: In the data, hours worked per working-age person fall by 21.0% over this period, whereas in the benchmark model, they fall by 27.7%.
Similar(51)
As shown in Fig. 1B, individuals who carry two copies of the short allele of the 5-HTTLPR polymorphism invest $2.69 (about 28% of the average risky allocation) less in the risky asset than those carrying one or two copies of the long allele of the genotype (p<0.02 in a one-tailed mean comparison test), in excess of the benchmark model.
The sample size for a precise model in Table 3 is far smaller than that of the benchmark model shown in Table 1, in spite of their population distributions being extremely close.
In comparison, they are respectively 0.575 and 0.653 for the first job, and 1.308 and 0.772 for the present job, as presented in Table 1 of the benchmark model sample.
In Fig. 5, we see that the benchmark model does a poor job in capturing the increase in the capital-output ratio.
We can notice that the one-covariate models always give strongly upward biased estimators of the coefficients, when comparing them to the benchmark model in the first column.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com