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Hypothetical Intertemporal Consumption Choices

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  • Kapteyn, A.

    (Tilburg University, School of Economics and Management)

  • Teppa, F.

    (Tilburg University, School of Economics and Management)

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 ''behavioral'' extensions, like habit formation. Models with habit formation appear to be superior to models with intertemporally additive preferences.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Kapteyn, A. & Teppa, F., 2001. "Hypothetical Intertemporal Consumption Choices," Other publications TiSEM 48fc0f6e-d2d8-40e0-b30c-5, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:48fc0f6e-d2d8-40e0-b30c-5bf9ebe2de4d
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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