Hypothetical Intertemporal Consumption Choices
AbstractThe paper extends and replicates part of the analysis by Barsky et al. (1997), which exploits hypothetical choices among different consumption streams to infer intertemporal substitution elasticities and rates of time preference. We use a new and much larger dataset than Barsky et al. Furthermore, we estimate structural models of intertemporal choice, while parameterising the parameters of interest as a function of relevant individual characteristics. We also consider "behavioural" extensions, like habit formation. Models with habit formation appear to be superior to models with intertemporally additive preferences. Copyright Royal Economic Society 2003
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Bibliographic InfoArticle provided by Royal Economic Society in its journal Economic Journal.
Volume (Year): 113 (2003)
Issue (Month): 486 (March)
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Other versions of this item:
- Kapteyn, Arie & Federica Teppa, 2002. "Hypothetical Intertemporal Consumption Choices," Royal Economic Society Annual Conference 2002 111, Royal Economic Society.
- Kapteyn, A. & Teppa, F., 2001. "Hypothetical Intertemporal Consumption Choices," Discussion Paper 2001-31, Tilburg University, Center for Economic Research.
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D9 - Microeconomics - - Intertemporal Choice
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