Intertemporal substitution and durable goods: long-run data

Reinhart, Carmen and Ogaki, Masao (1998): Intertemporal substitution and durable goods: long-run data.

Abstract

In this paper, we use long-run annual data to estimate the intertemporal elasticity of substitution while accounting for the intra-temporal substitution between nondurable consumption goods and durable consumption goods. We apply a two-step procedure that combines a cointegration approach to preference parameter estimation with Generalized Method of Moments.

• Item Type: MPRA Paper
• Language: English
• Keywords: consumption real interest rates durable goods cointegration
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth

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