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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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    4. Attanasio, Orazio P, et al, 1999. "Humps and Bumps in Lifetime Consumption," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 22-35, January.
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    7. 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.
    8. Frank Smets & Raf Wouters, 2002. "An estimated dynamic stochastic general equilibrium model of the euro area," Working Paper Research 35, National Bank of Belgium.
    9. Giancarlo Corsetti & Paolo Pesenti, 1997. "Welfare and Macroeconomic Interdependence," NBER Working Papers 6307, National Bureau of Economic Research, Inc.
    10. Jordi Galí & Tommaso Monacelli, 2005. "Optimal Monetary and Fiscal Policy in a Currency Union," Working Papers 240, Barcelona Graduate School of Economics.
    11. Martin Browning & Sule Alan, 2006. "Estimating Euler Equations with Noisy Data: Two Exact GMM Estimators," Economics Series Working Papers 283, University of Oxford, Department of Economics.
    12. Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 971-87, December.
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    18. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-57, April.
    19. Weber, Christian E, 2000. ""Rule-of-Thumb" Consumption, Intertemporal Substitution, and Risk Aversion," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(4), pages 497-502, October.
    20. 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.
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    23. Orazio Attanasio & Hamish Low, 2002. "Estimating Euler equations," IFS Working Papers W02/06, Institute for Fiscal Studies.
    24. Winter, Joachim & Schlafmann, Kathrin & Rodepeter, Ralf, 2011. "Rules of Thumb in Life-Cycle Saving Decisions," Discussion Papers in Economics 12334, University of Munich, Department of Economics.
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