A Tax-Based Estimate of the Elasticity of Intertemporal Substitution

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A Tax-Based Estimate of the Elasticity of Intertemporal Substitution

One of the most important behavioral parameters in macroeconomics is the elasticity of intertemporal substitution (EIS). Starting with the seminal work of Hall (1978), researchers have used an Euler equation framework to estimate the EIS, relating the growth rate of consumption to the after-tax interest rate facing consumers. This large literature has, however, produced very mixed results, perh...

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ژورنال

عنوان ژورنال: Quarterly Journal of Finance

سال: 2013

ISSN: 2010-1392,2010-1406

DOI: 10.1142/s2010139213500018