Search Results - subject:"elasticity of substitution"

Consumption Time in Household Production: Implications for the Goods-Time Elasticity of Substitution

Baral, Ranju; Davis, George C.; You, Wen - Agricultural and Applied Economics Association - AAEA - 2010

The relationship between the goods-time elasticity of substitution with consumption time as an input and the goods …-time elasticity of substitution without consumption time as an input is derived analytically. Under some reasonable assumptions, the … goods-time elasticity of substitution is shown to be greater if consumption time is not included as an input. An empirical …

Persistent link: https://www.econbiz.de/10009020385

Will the Consumption Externalities' Effects in the Ramsey Model Please Stand Up?

Wendner, Ronald - 2010

This paper investigates household decisions when individual utility depends on a consumption reference level. The desire to “keep up with the Joneses'' represents one such example. The prior literature shows that, in a Ramsey model, consumption externalities have no impact on steady state...

Persistent link: https://www.econbiz.de/10014194728

Panel Data Estimates of the Production Function and Product and Labor Market Imperfections

Dobbelaere, Sabien - 2010

Consistent with two models of imperfect competition in the labor market, the efficient bargaining model and the monopsony model, we provide two extensions of a microeconomic version of Hall's framework for estimating price-cost margins. We show that both product and labor market imperfections...

Persistent link: https://www.econbiz.de/10013138258

Elasticity of Intertemporal Substitution in Consumption : Empirical Evidence from a Natural Experiment

Kapoor, Mudit - 2010

This paper estimates the elasticity of intertemporal substitution in consumption (sigma). We exploit a natural experiment provided by a change in the Indian banking legislation which authorized all the deposit collecting institutions to offer a higher interest rate on deposits to citizens above...

Persistent link: https://www.econbiz.de/10013138429

Demand Cross Elasticity Without Substitutability : Evidence from an Experiment

Luini, Luigi - 2010

We study a market where goods are produced under low marginal costs with a poor degree of substitutability among products. In such an environment we ran an experiment in order to explain why prices are interdependent even when preferences are independent. We compare our results to previous...

Persistent link: https://www.econbiz.de/10013142862

In Dubio Pro CES : Supply Estimation with Misspecified Technical-Change

Leon-Ledesma, Miguel A. - 2010

Constant Elasticity of Substitution production function is then estimated within a "normalized" system approach for the US …

Persistent link: https://www.econbiz.de/10013145142

Efficient Resource Allocation Under Acceptant Substitutable Priorities

Kumano, Taro - 2010

The paper considers an assignment problem with acceptant substitutable priorities, and analyzes efficiency properties of the deferred acceptance rule. As a generalization of Ergin (2002), we come up with the acyclicity condition, and show that the priority structure is acyclical if and only if...

Persistent link: https://www.econbiz.de/10013147563

Elasticity Optimism

Imbs, Jean - 2010

In most macroeconomic models, the substitutability between domestic and foreign goods is calibrated using aggregated data. This imposes homogeneous elasticities across goods, and the calibration is only valid under this assumption. If elasticities are heterogeneous, the aggregate...

Persistent link: https://www.econbiz.de/10013149468

A Parsimonious Macroeconomic Model for Asset Pricing

Guvenen, Fatih - 2010

In this paper, I study asset prices in a two-agent macroeconomic model with two key features: limited participation in the stock market and heterogeneity in the elasticity of intertemporal substitution in consumption (EIS). The model is consistent with some prominent features of asset prices...

Persistent link: https://www.econbiz.de/10013151373

Computing DSGE Models with Recursive Preferences

Caldara, Dario - 2010

This paper compares different solution methods for computing the equilibrium of dynamic stochastic general equilibrium (DSGE) models with recursive preferences such as those in Epstein and Zin (1989 and 1991). Models with these preferences have recently become popular, but we know little about...

Persistent link: https://www.econbiz.de/10013152598