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Hypothetical Intertemporal Consumption Choices

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  • Kapteyn, A.

    (Tilburg University, Center For Economic Research)

  • Teppa, F.

    (Tilburg University, Center For Economic Research)

Abstract

The paper extends and replicates part of the analysis by Barsky, Juster, Kimball, and Shapiro (1997), which exploits hypothetical choices among different consumption streams to infer intertemporal substitution elasticities and rates of time preference. We use a new and much larger dataset than Barsky et al. Furthermore, we estimate structural models of intertemporal choice, while parameterizing the parameters of interest as a function of relevant individual characteristics. We also consider ''behavioral'' extensions, like habit formation. Models with habit formation appear to be superior to models with intertemporally additive preferences.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Kapteyn, A. & Teppa, F., 2001. "Hypothetical Intertemporal Consumption Choices," Discussion Paper 2001-31, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:48fc0f6e-d2d8-40e0-b30c-5bf9ebe2de4d
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    More about this item

    Keywords

    consumer choice; econometric models;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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