Households Consumption Behavior in Russia : Estimates on Micro Data

This paper investigates the household consumption behavior in Russia. The model assumes that household consumption can be described by both the Euler equation and the rule-of-thumb. Using panel data on households (Russian Longitudinal Monitoring Survey – Higher School of Economics [RLMS-HSE]) from 2000 to 2011, we obtain the estimates of the elasticity of intertemporal substitution and show that an essential part of households consume a constant share of their current income and do not solve optimization problem