Frisch elasticity of labor supply
The Frisch elasticity of labor supply captures the elasticity of hours worked to the wage rate, given a constant marginal utility of wealth. In other words, the Frisch elasticity measures the substitution effect of a change in the wage rate on labor supply.
It is named after the economist Ragnar Frisch.
Under certain circumstances, a constant marginal utility of wealth implies a constant marginal utility of consumption.
