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Consumption dynamics in Russia: Estimates on microdata

  • Larin, Alexander

    ()

    (Higher School of Economics, Nizhnii Novgorod, Russia)

  • Novak, Anna

    ()

    (Higher School of Economics, Nizhnii Novgorod, Russia)

  • Khvostova, Irina

    ()

    (Higher School of Economics, Nizhnii Novgorod, Russia)

Registered author(s):

    The paper investigates household consumption behavior in Russia. The model assumes that household consumption can be determined both by Euler equation and the rule of thumb. Using panel data on households (RLMS–HSE) from 2000 to 2011, we present estimates of elasticity of intertemporal substitution and show that an essential part of households consume constant part of their current income and do not solve optimization problem.

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    File URL: http://pe.cemi.rssi.ru/pe_2013_4_29-44.pdf
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    Article provided by Publishing House "SINERGIA PRESS" in its journal Applied Econometrics.

    Volume (Year): 32 (2013)
    Issue (Month): 4 ()
    Pages: 29-44

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    Handle: RePEc:ris:apltrx:0222
    Contact details of provider: Web page: http://appliedeconometrics.cemi.rssi.ru/

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    1. Orazio P. Attanasio & Guglielmo Weber, 1994. "Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey," NBER Working Papers 4795, National Bureau of Economic Research, Inc.
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    3. Winter, Joachim & Schlafmann, Kathrin & Rodepeter, Ralf, 2012. "Rules of Thumb in Life-cycle Saving Decisions," Munich Reprints in Economics 19721, University of Munich, Department of Economics.
    4. Maurice Obstfeld and Kenneth Rogoff., 1995. "Exchange Rate Dynamics Redux," Center for International and Development Economics Research (CIDER) Working Papers C95-048, University of California at Berkeley.
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    8. Campbell, John Y. & Mankiw, N. Gregory, 1990. "Permanent Income, Current Income, and Consumption," Scholarly Articles 3353762, Harvard University Department of Economics.
    9. Frank Smets & Rafael Wouters, 2007. "Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach," American Economic Review, American Economic Association, vol. 97(3), pages 586-606, June.
    10. Obstfeld, M., 1998. "Risk and Exchange Rate," Papers 193, Princeton, Woodrow Wilson School - Public and International Affairs.
    11. Joseph G. Altonji & Aloysius Siow, 1986. "Testing the Response of Consumption to Income Changes with (Noisy) PanelData," NBER Working Papers 2012, National Bureau of Economic Research, Inc.
    12. Kris Jacobs & Kevin Q. Wang, 2004. "Idiosyncratic Consumption Risk and the Cross Section of Asset Returns," Journal of Finance, American Finance Association, vol. 59(5), pages 2211-2252, October.
    13. Sule Alan & Orazio Attanasio & Martin Browning, 2005. "Estimating Euler Equations with Noisy Data: Two Exact GMM Estimators," CAM Working Papers 2005-10, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
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    18. Orazio Attanasio & James Banks & Costas Meghir & Guglielmo Weber, 1995. "Humps and bumps in lifetime consumption," IFS Working Papers W95/14, Institute for Fiscal Studies.
    19. Zeldes, Stephen P, 1989. "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 305-346, April.
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    23. Lukiyanova, Anna & Oshchepkov, Aleksey, 2012. "Income mobility in Russia (2000–2005)," Economic Systems, Elsevier, vol. 36(1), pages 46-64.
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    25. Orazio P. Attanasio & Guglielmo Weber, 1993. "Consumption Growth, the Interest Rate and Aggregation," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 631-649.
    26. Robert E. Hall, 1981. "Intertemporal Substitution in Consumption," NBER Working Papers 0720, National Bureau of Economic Research, Inc.
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    28. repec:taf:jnlbes:v:30:y:2012:i:2:p:297-311 is not listed on IDEAS
    29. Amemiya, Yasuo, 1985. "Instrumental variable estimator for the nonlinear errors-in-variables model," Journal of Econometrics, Elsevier, vol. 28(3), pages 273-289, June.
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