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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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    6. Frank Smets & Raf Wouters, 2007. "Shocks and Frictions in US Business Cycles : a Bayesian DSGE Approach," Working Paper Research 109, National Bank of Belgium.
    7. Orazio P. Attanasio & Hamish Low, 2000. "Estimating Euler Equations," NBER Technical Working Papers 0253, National Bureau of Economic Research, Inc.
    8. Sule Alan, 2012. "Do disaster expectations explain household portfolios?," Quantitative Economics, Econometric Society, vol. 3(1), pages 1-28, 03.
    9. Sule Alan & Orazio Attanasio & Martin Browning, 2009. "Estimating Euler equations with noisy data: two exact GMM estimators," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(2), pages 309-324, 03.
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    19. repec:taf:jnlbes:v:30:y:2012:i:2:p:297-311 is not listed on IDEAS
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