Author: Zuliu Hu
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
Book Description
Some of the highly controversial questions in macroeconomics critically hinge on the value of a single parameter of consumer preference--the elasticity of intertemporal substitution. This paper provides new estimates of this parameter for individual G-7 and a panel of twenty OECD countries. We find that single equation GMM estimates are typically small and imprecise, consistent with Hall's (1988) finding from the U.S. data. Estimation of a system of equations that takes into account the cross-equation restrictions implied by theory, however, generally gives larger and better determined values for the parameter. The panel procedure also yields relatively large estimates. Overall our multi-country results contradict the hypothesis of zero intertemporal substitution.
Intertemporal Substitution in Consumption Revisited
Author: Zuliu Hu
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
Book Description
Some of the highly controversial questions in macroeconomics critically hinge on the value of a single parameter of consumer preference--the elasticity of intertemporal substitution. This paper provides new estimates of this parameter for individual G-7 and a panel of twenty OECD countries. We find that single equation GMM estimates are typically small and imprecise, consistent with Hall's (1988) finding from the U.S. data. Estimation of a system of equations that takes into account the cross-equation restrictions implied by theory, however, generally gives larger and better determined values for the parameter. The panel procedure also yields relatively large estimates. Overall our multi-country results contradict the hypothesis of zero intertemporal substitution.
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
Book Description
Some of the highly controversial questions in macroeconomics critically hinge on the value of a single parameter of consumer preference--the elasticity of intertemporal substitution. This paper provides new estimates of this parameter for individual G-7 and a panel of twenty OECD countries. We find that single equation GMM estimates are typically small and imprecise, consistent with Hall's (1988) finding from the U.S. data. Estimation of a system of equations that takes into account the cross-equation restrictions implied by theory, however, generally gives larger and better determined values for the parameter. The panel procedure also yields relatively large estimates. Overall our multi-country results contradict the hypothesis of zero intertemporal substitution.
Intertemporal Substitution in Consumption Revisited
Consumption Adjustment to Real Interest Rates
Author: Joon-Ho Hahm
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 22
Book Description
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 22
Book Description
Intertemporal Substitution in Consumption
Author: Robert Ernest Hall
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 62
Book Description
Does a higher real interest rate induce significant postponement of consumption? According to the theory developed here, this question can be answered by studying the relation between the rate of growth of consumption and expected real interest rates. In postwar data for the United States, expected real returns have declined over time in the stock market and for savings accounts. Over the same period, the rate of growth of consumption has been almost steady. The paper concludes that intertemporal substitution is weak, for if it were strong, the growth rate of consumption would have declined.
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 62
Book Description
Does a higher real interest rate induce significant postponement of consumption? According to the theory developed here, this question can be answered by studying the relation between the rate of growth of consumption and expected real interest rates. In postwar data for the United States, expected real returns have declined over time in the stock market and for savings accounts. Over the same period, the rate of growth of consumption has been almost steady. The paper concludes that intertemporal substitution is weak, for if it were strong, the growth rate of consumption would have declined.
Intertemporal Substitution in Consumption
Author: Karsten N. Pedersen
Publisher:
ISBN:
Category : Consumo
Languages : en
Pages : 28
Book Description
Publisher:
ISBN:
Category : Consumo
Languages : en
Pages : 28
Book Description
Intertemporal Substitution in Public and Private Consumption
Author: Hendrik Peter van Dalen
Publisher:
ISBN: 9789055390212
Category : Consumption (Economics)
Languages : en
Pages : 19
Book Description
Publisher:
ISBN: 9789055390212
Category : Consumption (Economics)
Languages : en
Pages : 19
Book Description
Intertemporal substitution in consuption revisited
The Intertemporal Elasticity of Substitution in Consumption
Intertemporal Elasticity of Substitution in Consumption
Consumption, Wealth, the Elasticity of Intertemporal Substitution and Long-run Stock Market Returns
Author: Carlo A. Favero
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 29
Book Description
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 29
Book Description