Hypothetical Intertemporal Consumption Choices

A. Kapteyn, F. Teppa

Research output: Working paperDiscussion paperOther research output

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Abstract

The paper extends and replicates part of the analysis by Barsky, Juster, Kimball, and Shapiro (1997), which exploits hypothetical choices among different consumption streams to infer intertemporal substitution elasticities and rates of time preference.We use a new and much larger dataset than Barsky et al. Furthermore, we estimate structural models of intertemporal choice, while parameterizing the parameters of interest as a function of relevant individual characteristics.We also consider lobehaviorallc extensions, like habit formation.Models with habit formation appear to be superior to models with intertemporally additive preferences.
Original languageEnglish
Place of PublicationTilburg
PublisherEconometrics
Number of pages32
Volume2001-31
Publication statusPublished - 2001

Publication series

NameCentER Discussion Paper
Volume2001-31

Fingerprint

Habit formation
Elasticity
Individual characteristics
Intertemporal substitution
Intertemporal choice
Structural model
Time preference

Keywords

  • consumer choice
  • econometric models

Cite this

Kapteyn, A., & Teppa, F. (2001). Hypothetical Intertemporal Consumption Choices. (CentER Discussion Paper; Vol. 2001-31). Tilburg: Econometrics.
Kapteyn, A. ; Teppa, F. / Hypothetical Intertemporal Consumption Choices. Tilburg : Econometrics, 2001. (CentER Discussion Paper).
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Kapteyn, A & Teppa, F 2001 'Hypothetical Intertemporal Consumption Choices' CentER Discussion Paper, vol. 2001-31, Econometrics, Tilburg.

Hypothetical Intertemporal Consumption Choices. / Kapteyn, A.; Teppa, F.

Tilburg : Econometrics, 2001. (CentER Discussion Paper; Vol. 2001-31).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Hypothetical Intertemporal Consumption Choices

AU - Kapteyn, A.

AU - Teppa, F.

N1 - Pagination: 32

PY - 2001

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N2 - The paper extends and replicates part of the analysis by Barsky, Juster, Kimball, and Shapiro (1997), which exploits hypothetical choices among different consumption streams to infer intertemporal substitution elasticities and rates of time preference.We use a new and much larger dataset than Barsky et al. Furthermore, we estimate structural models of intertemporal choice, while parameterizing the parameters of interest as a function of relevant individual characteristics.We also consider lobehaviorallc extensions, like habit formation.Models with habit formation appear to be superior to models with intertemporally additive preferences.

AB - The paper extends and replicates part of the analysis by Barsky, Juster, Kimball, and Shapiro (1997), which exploits hypothetical choices among different consumption streams to infer intertemporal substitution elasticities and rates of time preference.We use a new and much larger dataset than Barsky et al. Furthermore, we estimate structural models of intertemporal choice, while parameterizing the parameters of interest as a function of relevant individual characteristics.We also consider lobehaviorallc extensions, like habit formation.Models with habit formation appear to be superior to models with intertemporally additive preferences.

KW - consumer choice

KW - econometric models

M3 - Discussion paper

VL - 2001-31

T3 - CentER Discussion Paper

BT - Hypothetical Intertemporal Consumption Choices

PB - Econometrics

CY - Tilburg

ER -

Kapteyn A, Teppa F. Hypothetical Intertemporal Consumption Choices. Tilburg: Econometrics. 2001. (CentER Discussion Paper).