Income effect is the primary reason why the initial impulse of labor supply decays with time instead of sticking at its initial impulsive levels with attendant economic expansion arising out of consequent return to consumption away from high initial rates of investment as is clearly seen in the '99 Jorgenson results.Indeed.
An infinite-horizon model like Jorgenson's has no income effect.
It most certainly displays all the characteristics of the income effect that arise out of the dynamic supply demand relations inherent to the empirical parameters of the model.
Income effect is inherent witin the time series relations to which the Jorgenson IGEM is parameterised.