Temporary and Permanent Changes in Consumption Growth
This paper examines whether demographic variables and other household characteristics are more likely to affect the intercept of the Euler equation or the intertemporal elasticity of substitution of the household. Analysis of British data suggests that demographics affect the growth rate of consumption in a purely transitory way, while the educational level and the employment status of the wife appear to have a significant effect on the intertemporal elasticity of substitution. The effect of the employment status of the head is more uncertain. After taking these differences into account, the hypothesis of no excess sensitivity cannot be rejected for households with two earners. Copyright 1997 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 107 (1997)
Issue (Month): 441 (March)
|Contact details of provider:|| Postal: 2 Dean Trench Street, Westminster, SW1P 3HE|
Phone: +44 20 3137 6301
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|