Search Results - subject:"Intertemporal Substitution"

Saving Rates and Portfolio Choice with Subsistence Consumption

Achury, Carolina; Hubar, Sylwia; Koulovatianos, Christos - In: Review of Economic Dynamics 15 (2012) 1, pp. 108-126

We analytically show that a common across rich/poor individuals Stone-Geary utility function with subsistence consumption in the context of a simple two-asset portfolio-choice model is capable of qualitatively and quantitatively explaining: (i) the higher saving rates of the rich, (ii) the...

Persistent link: https://www.econbiz.de/10008828681

Risk and intertemporal substitution : livestock portfolios and off-take among Kenyan pastoralists

Lybbert, Travis J.; McPeak, John G. - In: Journal of development economics 97 (2012) 2, pp. 415-426

Persistent link: https://www.econbiz.de/10015121696

Do Workers Work More When Wages Are High?

Fehr, Ernst; Götte, Lorenz - 2004

The canonical model of life-cycle labor supply predicts a positive response of labor supplied to transitory wage changes. We tested this prediction by conducting a randomized field experiment with bicycle messengers. In contrast to previous studies we can observe in which way working hours as...

Persistent link: https://www.econbiz.de/10010261772

Diminishing Impatience: Disentangling Time Preference from Uncertain Lifetime

Halevy, Yoram - Vancouver School of Economics - 2004

A decision maker with time consistent preferences may exhibit diminishing impatience, when uncertain lifetime is accounted for. Uncertain lifetime captures not only the risk of mortality, but also the possibility that a promise for a delayed reward might be breached, or a postponed consumption...

Persistent link: https://www.econbiz.de/10004977024

Strotz meets Allais: Diminishing Impatience and the Certainty Effect

Halevy, Yoram - Vancouver School of Economics - 2004

Decision makers tend to exhibit a higher degree of impatience when considering a delay to an immediate reward than when contemplating an identical delay to an equal future reward. This work argues that diminishing impatience originates from the distinction between the certain present and the...

Persistent link: https://www.econbiz.de/10004977977

Strotz meets Allais: Diminishing Impatience and the Certainty Effect

Halevy, Yoram - Vancouver School of Economics - 2004

Persistent link: https://www.econbiz.de/10011188092

Loss aversion and labor supply

Goette, Lorenz; Huffman, David; Fehr, Ernst - 2003

In many occupations workers? labor supply choices are constrained by institutional rules regulating labor time and effort provision. This renders explicit tests of the neoclassical theory of labor supply difficult. Here we present evidence from studies examining labor supply responses in...

Persistent link: https://www.econbiz.de/10010261634

A Parsimonious Macroeconomic Model for Asset Pricing: Habit Formation or Cross-sectional Heterogeneity?

Guvenen, M. Fatih - University of Rochester - Center for Economic Research … - 2003

features: limited participation in the stock market and heterogeneity in the elasticity of intertemporal substitution. The …

Persistent link: https://www.econbiz.de/10005504045

Precautionary Saving and Consumption Smoothing Across Time and Possibilities

Kimball, Miles; Weil, Philippe - Sciences économiques, Sciences Po - 2003

This Paper examines how aversion to risk and aversion to intertemporal substitution determines the strength of the … risk aversion, regardless of the elasticity of intertemporal substitution. Holding risk preferences fixed, the extent to … elasticity of intertemporal substitution, constant-relative risk aversion utility functions, these conditions are also necessary. …

Persistent link: https://www.econbiz.de/10010785565

Disentangling Risk Aversion and Intertemporal Substitution Through a Reference Level

Garcia, René; Renault, Éric; Semenov, Andrei - Centre Interuniversitaire de Recherche en Analyse des … - 2003

attitudes towards risk and intertemporal substitution. We show that the higher σ is (while remaining smaller than one to be …

Persistent link: https://www.econbiz.de/10005100797