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Explain how you would modify our main labor supply model to reflect the forces that Hurst identifies. Show analytically (derive mathematically) the conditions under which Hurst's argument will hold in the world of our simple model. If you have to switch between static and dynamic models to examine different parts of his argument, that is fine. Note that this is a vague and open ended question. I want to see how creative you might be in taking the machinery of our basic model and tweaking it to tell different stories, and which different stories you picked up from his talk.

*Here, Hurst argues that technology have decreased the labor supply not only by introducing advanced capital but also by increasing the value of lesuire by introducing games,I-phone...etc. How am I supposed to answer this question?

Reference no: EM131438175

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