1. Lectures in Macroeconomics- Charles W. Upton Why Americans Work Harder

2. GDP and Hours Worked, G7

3. Why Americans Work Harder GDP and Hours Worked, G7

4. Why Americans Work Harder GDP and Hours Worked, G7 GDP Figures are OECD Purchasing Power Parity Data are 1993-1996 figures

5. Why Americans Work Harder 1970-74 Data 17.5 25.9

6. Why Americans Work Harder 1993-1996 Data 24.4 23.5 Why the differences? And why the changes?

7. Why Americans Work Harder 1993-1996 Data 24.4 23.5 Why the differences? And why the changes? Lets look at a model by Edward Prescott

8. Why Americans Work Harder Utility in the Prescott Model

9. Why Americans Work Harder The Immortal Consumer

10. Why Americans Work Harder Allowing for Leisure

11. Why Americans Work Harder The Final Equation

12. Why Americans Work Harder Optimization

13. Why Americans Work Harder Optimization

14. Why Americans Work Harder Optimization

15. Why Americans Work Harder Optimization

16. Why Americans Work Harder Optimization

17. Why Americans Work Harder Optimization

18. Why Americans Work Harder The Production Function

19. Why Americans Work Harder The Tax on Consumption and Wages

20. Why Americans Work Harder Hours Worked

21. Why Americans Work Harder Hours Worked The higher the value of leisure (i.e., the higher the value of θ) the fewer hours worked

22. Why Americans Work Harder Hours Worked The higher the value of leisure (i.e., the higher the value of θ) the fewer hours worked The higher the tax rate (i.e., the higher the value of τ) the fewer hours worked

23. Why Americans Work Harder Fitting the Model Country Tax rate τ c/yActualPredicted Germany0.590.7419.319.5 France0.590.7417.519.5 Italy0.560.6916.518.8 Canada0.520.7722.921.3 United Kingdom0.440.8322.8 Japan0.370.6827.029.0 United States0.400.8125.924.6

24. Why Americans Work Harder Fitting the Model Country Tax rate τ c/yActualPredicted Germany0.590.7419.319.5 France0.590.7417.519.5 Italy0.560.6916.518.8 Canada0.520.7722.921.3 United Kingdom0.440.8322.8 Japan0.370.6827.029.0 United States0.400.8125.924.6 The differences are consistent with the tax rates. Moreover, the change is consistent with changes in tax rates.

25. Why Americans Work Harder Are Europeans Better Off? D S SR S LR H* w* HτHτ Some argue that Europeans are better off. They get less income but more leisure.

26. Why Americans Work Harder Are Europeans Better Off? D S SR S LR H* w* HτHτ Some argue that Europeans are better off. They get less income but more leisure. Any tax involves an efficiency loss.

27. Why Americans Work Harder Are Europeans Better Off? D S SR S LR H* w* HτHτ US France

28. Why Americans Work Harder Are Europeans Better Off? D S SR S LR H* w* HτHτ US France Prescott estimates that if France reduced its taxes to US rates, it would amount to a 19% gain in consumption

29. Why Americans Work Harder End ©2004 Charles W. Upton. All rights reserved