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Hypothetical intertemporal consumption choices Author info | Abstract | Publisher info | Download info | Related research | Statistics Kapteyn, A.
Teppa, F. (Tilburg University, Center for Economic Research)
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The paper extends and replicates part of the analysis by Barsky, Juster, Kimball, and Shapiro (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 parameterizing the parameters of interest as a function of relevant individual characteristics. We also consider lobehaviorallc extensions, like habit formation. Models with habit formation appear to be superior to models with intertemporally additive preferences.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
31.
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Date of creation: 2001Date of revision:
Handle: RePEc:dgr:kubcen:200131Contact details of provider: Web page: http://center.uvt.nl
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Find related papers by JEL classification: C5 - Mathematical and Quantitative Methods - - Econometric Modeling C9 - Mathematical and Quantitative Methods - - Design of Experiments D9 - Microeconomics - - Intertemporal Choice and Growth
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