Sidrauski Model with Endogenous Labor

Management Information Systems: the International Scientific Journal, No. 1, pp. 42-46, 2007

11 Pages Posted: 25 Apr 2009 Last revised: 2 Nov 2009

See all articles by Karol Szomolányi

Karol Szomolányi

University of Economics in Bratislava - Department of Operations Research and Econometrics

Martin Lukacik

University of Economics in Bratislava - Department of Operations Research and Econometrics

Adriana Lukacikova

University of Economics in Bratislava - Department of Operations Research and Econometrics

Date Written: April 1, 2007

Abstract

In the paper we analyze the Sidrauski model similar by Walsh (2003) (see for example Sterken, 2005). For analyses it is needed to use Dynamic optimization techniques. The model is extended by endogenous labor. We show that all Walsh's conditions are kept. Even though in steady state analysis in generally the superneutrality of money theory does not hold. Labor supply, is no longer inelastic and influences marginal productivity. To reach the money superneutrality we must assume that preferences of representative consumer are represented by separable utility function. A similar analysis was made by Walsh, the results are the same in general case.

Keywords: Sidrauski Model, Labor, Dynamic Programming, Envelope Theory. Steady State. Supernautrality of Money. Separable Utility Function. Friedman (Chicago) Rule

JEL Classification: C02. E13

Suggested Citation

Szomolányi, Karol and Lukacik, Martin and Lukacikova, Adriana, Sidrauski Model with Endogenous Labor (April 1, 2007). Management Information Systems: the International Scientific Journal, No. 1, pp. 42-46, 2007. Available at SSRN: https://ssrn.com/abstract=1374311

Karol Szomolányi (Contact Author)

University of Economics in Bratislava - Department of Operations Research and Econometrics ( email )

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

Martin Lukacik

University of Economics in Bratislava - Department of Operations Research and Econometrics ( email )

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

Adriana Lukacikova

University of Economics in Bratislava - Department of Operations Research and Econometrics

Dolnozemská cesta 1
Bratislava, 852 35
Slovakia

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