Author: Klaus NeusserPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Intertemporal nonseparability, liquidity constraints, and seasonality of aggregate consumer expenditures : an empirical investigation
Author: Klaus NeusserThe Intertemporal Allocation of Consumption
Author: Orazio P. AttanasioPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 34
Book Description
Liquidity constraints and, more generally, imperfections in credit markets, can be extremely important for the intertemporal allocation of consumption and have received a substantial amount of attention in the theoretical and empirical literature on consumption. In the first part of the paper I review the reasons why liquidity constraints are important. Unfortunately, for several reasons, it is not easy to test for the presence of liquidity constraints. Aggregation issues preclude the use of aggregate time series data for such a purpose. Tests based on micro data, however, are complicated by some serious identification problems. If a simple equilibrium model does not fit some data set, one can change the assumptions about the opportunity set available to the economic agents or the specification of their preferences. For instance, empirical evidence that detects excess sensitivity of consumption to income could be explained by liquidity constraints or by non separability between consumption and leisure. However, the available evidence shows that it is possible to find flexible specifications of preferences that fit consumption movements at business cycle frequencies. I also present some simulation evidence that shows that for many plausible parameter configurations, liquidity constraints are likely to be relevant only for a few economic agents. In the last part of the paper I present some new evidence on the relevance of liquidity constraints based on debt holding data. The data indicate that the demand for debt of individuals more likely to be liquidity constrained is less elastic to changes in the interest rate.
Intertemporal Non-separability Or Borrowing Restrictions?
Author: Costas MeghirPublisher:
ISBN:
Category : Consumer credit
Languages : en
Pages : 72
Book Description
An Empirical Study of the Time-nonseparable Model of Aggregate Consumption with Liquidity Constraints
Author: Tony S. WirjantoIndex of Economic Articles in Journals and Collective Volumes
Author: Index of Economic Articles in Journals and Collective Volumes
Author: American Economic AssociationPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 1406
Book Description
Agricultural Household Models
Author: Inderjit SinghPublisher:
ISBN:
Category : Agricultural industries
Languages : en
Pages : 360
Book Description
This book presents the basic model of an agricultural household that underlies most of the case studies undertaken so far. The model assumes that households are price-takers and is therefore recursive. The decisions modeled include those affecting production and the demand for inputs and those affecting consumption and the supply of labor. Comparative results on selected elasticities are presented for a number of economies. The empirical significance of the approach is demonstrated in a comparison of models that treat production and consumption decisions separately and those in which the decisionmaking process is recursive. The book summarizes the implications of agricultural pricing policy for the welfare of farm households, marketed surplus, the demand for nonagricultural goods and services, the rural labor market, budget revenues, and foreign exchange earnings. In addition, it is shown that the basic model can be extended in order to explore the effects of government policy on crop composition, nutritional status, health, saving, and investment and to provide a more comprehensive analysis of the effects on budget revenues and foreign exchange earnings. Methodological topics, primarily the data requirements of the basic model and its extensions, along with aggregation, market interaction, uncertainty, and market imperfections are discussed. The most important methodological issues - the question of the recursive property of these models - is also discussed.
Financial Markets and the Real Economy
Author: John H. CochranePublisher: Now Publishers Inc
ISBN: 1933019158
Category : Business & Economics
Languages : en
Pages : 117
Book Description
Financial Markets and the Real Economy reviews the current academic literature on the macroeconomics of finance.
The Allocation of Time and Goods Over the Life Cycle
Author: Gilbert R. GhezPublisher: Columbia University Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 180
Book Description
There is a belief now that family behavior over the life cycle can be analyzed by economic methods. This study deals with allocation of resources by families over time.
Dynamic Economics
Author: Jerome AddaPublisher: MIT Press
ISBN: 0262547880
Category : Business & Economics
Languages : en
Pages : 297
Book Description
An integrated approach to the empirical application of dynamic optimization programming models, for students and researchers. This book is an effective, concise text for students and researchers that combines the tools of dynamic programming with numerical techniques and simulation-based econometric methods. Doing so, it bridges the traditional gap between theoretical and empirical research and offers an integrated framework for studying applied problems in macroeconomics and microeconomics. In part I the authors first review the formal theory of dynamic optimization; they then present the numerical tools and econometric techniques necessary to evaluate the theoretical models. In language accessible to a reader with a limited background in econometrics, they explain most of the methods used in applied dynamic research today, from the estimation of probability in a coin flip to a complicated nonlinear stochastic structural model. These econometric techniques provide the final link between the dynamic programming problem and data. Part II is devoted to the application of dynamic programming to specific areas of applied economics, including the study of business cycles, consumption, and investment behavior. In each instance the authors present the specific optimization problem as a dynamic programming problem, characterize the optimal policy functions, estimate the parameters, and use models for policy evaluation. The original contribution of Dynamic Economics: Quantitative Methods and Applications lies in the integrated approach to the empirical application of dynamic optimization programming models. This integration shows that empirical applications actually complement the underlying theory of optimization, while dynamic programming problems provide needed structure for estimation and policy evaluation.