Hypothetical Intertemporal Consumption Choices
AbstractThe 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 ''behavioral'' extensions, like habit formation. Models with habit formation appear to be superior to models with intertemporally additive preferences.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 111.
Date of creation: 29 Aug 2002
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Other versions of this item:
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D9 - Microeconomics - - Intertemporal Choice
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-07-08 (All new papers)
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