Intertemporal substitution
The Elasticity of Intertemporal Substitution Reconsidered
... The elasticity of intertemporal substitution is a crucial parameter in …nance and macroeconomics, yet its estimation remains elusive. We show, based on Fisher’s relation and the expectations theory of the ...
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Capital, Interest, and Aggregate Intertemporal Substitution
... aggregate intertemporal substitution, and show how the correlation between expected consumption growth and the “risk free” rate can be positive or negative, depending on the importance of shocks to the ...
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The Intertemporal-Substitution Hypothesis is Alive and Well (But Hiding in the Data)
... the intertemporal-substitution hypothesis employment and work hours fluctuate cyclically because workers want to increase their leisure and non-market work during recessions when real wages are relatively ...
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Government Spending and Consumer Attitudes Toward Risk, Time Preference, and Intertemporal Substitution: An Econometric Analysis
... We construct a model that considers the direct effects, if any, of government spending on the attitudes of a typical consumer toward risk, time preference, and intertemporal substitution. The null ...
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Disentangling Intertemporal Substitution and Risk Aversion under the Expected Utility Theorem
... A disturbing feature of the conventional objective function for intertemporal decisions under uncertainty is that the agent’s attitudes toward intertemporal substitution and risk aversion are ...
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Risk Aversion and Intertemporal Substitution in the Capital Asset Pricing Model
... A unit elasticity of intertemporal substitution gives rise to myopia in consumption-savings decisions (the future does not affect the optimal consumption plan), while a unit coefficient [r] ...
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Intertemporal substitution and durable goods: long run data
... out, intertemporal substitution by consumers is a central element of many modem macroeconomic and international ...the intertemporal elasticity of substitution ...
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Intertemporal Substitution in Maternal Labor Supply: Evidence using State School Entrance Age Laws
... The choice of the right age at which to send a child to school has been a much debated issue among parents and policy makers. Most of this discussion has emerged in the light of the evidence, by various researchers, that ...
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Measuring intertemporal substitution: The role of durable goods
... (1988), intertemporal substitution by consumers is a central element of many modem macroeconomic and international ...the intertemporal elasticity of substitution is ...the ...
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Intertemporal Substitution and Hyperbolic Discounting
... in intertemporal prefer- ences towards present ...that intertemporal discount rates decline with the delay in rewards and are well-described by a hyperbolic discount function ...of intertemporal ...
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Cross Country Heterogeneity in Intertemporal Substitution
... In this paper we collect 2,735 estimates of the elasticity of intertemporal substitution re- ported in 169 studies and review the literature quantitatively using meta-analysis methods. Meta-analysis, which ...
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Reconciling Conflicting Evidence on the Elasticity of Intertemporal Substitution: A Macroeconomic Perspective
... for i = h, n. Throughout this paper the superscripts h and n denote stockh olders and n on- stockholders respectively. The subjective time discount factor under certainty is given by β = ( 1+η 1 ), and α is the risk ...
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Estimating Intertemporal and Intratemporal Substitutions When Both Income and Substitution Effects are Present: The Role of Durable Goods
... the intertemporal substitution ...of intertemporal substitution statistically and economically ...of substitution for durable ...
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Bertrand competition with intertemporal demand
... There is a literature on the Coase conjecture, building on models of consumers who have the possibility of intertemporal substitution and are endowed with foresight, see e.g. Gul, Sonnenschein and Wilson ...
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Making the Case for a Low Intertemporal Elasticity of Substitution
... Agents in our model have Epstein and Zin (1989) (see also Weil (1990)) preferences and growth is endogenous. Epstein-Zin preferences are convenient because they allow us to make a meaningful distinction between ...
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An Intertemporal CAPM with stochastic volatility
... of intertemporal asset pricing theory is that long-term investors should care just as much about the returns they earn on their invested wealth as about the level of that ...(1973) intertemporal capital ...
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Model Uncertainty and Intertemporal Tax Smoothing
... Specifically, the model predicts that the government should issue debt in order to spread the increases in tax rates over longer periods and minimize the welfare losses when facing a pos[r] ...
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Cumulative weighing of time in intertemporal tradeoffs
... of intertemporal consumption decisions: Not only do consumption goods easily lead to satiation ...introduce intertemporal uncertainty about tastes (how much will I like a candy bar in one year?), and they ...
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The intertemporal allocation of consumption: theory and evidence
... Second, while the evidence discussed above shows the lack of relationship between changes in the marginal utility of consumption and expected changes in income at high (business cycle) f[r] ...
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Intertemporal Changes in the Riskiness of REITs
... The cusum of squares tests reject the null hypothesis of constancy over the sample period for all four REIT portfolios at the 1% level.. These results indicate that the return-generating[r] ...
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