Intertemporal substitution in consumption, labor supply elasticity and sunspot fluctuations in continuous-time models
نویسندگان
چکیده
منابع مشابه
Elasticity of Intertemporal Substitution: An Investigation in Iran
We[1] present estimates of the Elasticity of Intertemporal Substitution (EIS) for Iranian households using synthetic cohort panels based on household micro-data. Results show significant difference with the common values used in Dynamic Stochastic General Equilibrium (DSGE) models which are originally based on estimated values for developed countries. We show that this difference has important ...
متن کاملLabour supply and intertemporal substitution
This paper concerns the estimation of an intertemporal model for labour supply and consumption that recognises the presence of nonworkers and which is cast in a structural optimising framework that allows for uncertainty. Through the utilisation of a micro-data source that measures consumption and labour supply we are able to estimate a flexible preference model which incorporates comer solutio...
متن کاملIntertemporal Elasticity of Substitution with Leisure Margin
This paper investigates whether leisure time definitions matter in the estimation of the intertemporal elasticity of substitution of consumption (IES) by using a utility specification that allows interaction between consumption and leisure time. We find that the IES estimated using a narrowly defined leisure measure that excludes quasi-leisure activities is larger than that estimated using nonm...
متن کاملIs the Elasticity of Intertemporal Substitution Constant?∗
This paper shows that the CRRA specification of intertemporal preferences (implying a constant elasticity of intertemporal substitution, or EIS), imposes surprising limitations on within period budget allocations. Consequently, the constant EIS assumption can be tested with demand data. In fact, the parameter of the CRRA utility function is pinned down completely by the shape of Engel curves; i...
متن کاملIntertemporal Labor Supply and Human Capital Accumulation ∗
We solve and estimate a dynamic model that allows agents to optimally choose their labor hours and consumption and that allows for both human capital accumulation and savings. Estimation results and simulation exercises indicate that the intertemporal elasticity of substitution is much higher than the conventional estimates and the downward bias comes from the omission of the human capital accu...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: International Journal of Economic Theory
سال: 2007
ISSN: 1742-7355
DOI: 10.1111/j.1742-7363.2007.00058.x