On the Intertemporal Elasticity of Substitution under Nonhomothetic Utility

In this note, we use a model with nonseparable and nonhomothetic preferences to estimate the intertemporal elasticity of substitution (IES). We show that, while the homothetic utility model may induce a bias that increases the elasticity of substitution between nondurables and durables, the estimated IES remains positive and significant. Copyright (c) 2008 The Ohio State University.

MoreLess

Year of publication:	2008
Authors:	OKUBO, MASAKATSU
Published in:	Journal of Money, Credit and Banking. - Blackwell Publishing. - Vol. 40.2008, 5, p. 1065-1072
Publisher:	Blackwell Publishing

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005814104