Crossley, Thomas; Low, Hamish - Institute for Fiscal Studies (IFS) - 2005
) implies that intratemporal demands are in the PIGL/PIGLOG class. This class generates (at most) rank two demand systems and we … assumption is rejected by demand data.
Keywords: elasticity of intertemporal substitution, demand systems
JEL Classi cation: D91 … preferences
correspond to rank 2 demand systems. The rank of a demand system is the rank of the matrix of
coe cients on income …