Estimating and testing intertemporal preferences: A unified framework for consumption, work and savings
AbstractFive waves of the Panel Study of Income Dynamics (PSID), 1985-1989 including both wealth supplements, are used to construct an intertemporal budget constraint for selected single headed households. A new functional form of the dual consumer profit function rationalizing consumption, labor supply and savings is specified, estimated and used to test commonly maintained separability hypotheses. Both consumption- labor and time separability are rejected. Cross-price Frisch elasticities are found not to equal zero and this in turns affects all estimates of consumption, labor supply and saving elasticities. This paper contains new results from a previous paper submitted to EconWPA 12/16/03.
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Bibliographic InfoPaper provided by EconWPA in its series GE, Growth, Math methods with number 0409002.
Length: 64 pages
Date of creation: 12 Sep 2004
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Note: Type of Document - pdf; pages: 64. PDF file, 64 Pages, 9 Tables, 3 Figures.
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intertemporal; consumption; labor; labour; wealth; savings; PSID; Panel Study of Income Dynamics; consumer profit function;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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