 Individual Euler Equations Rather Than Household Euler EquationsNo 497, Econometric Society 2004 North American Summer Meetings from Econometric Society Abstract: This paper focuses on the identification and estimation of the intertemporal and intratemporal elasticities of substitution for the wife and separately for the husband using individual Euler equations. To that end, the household is represented as a group of agents making joint decisions. By means of this framework, individual Euler equations are derived and used to identify and estimate the parameters of interest. The main advantage of this approach is that the key parameters can be identified for all household members and not only for the household as a whole. To implement this approach it is essential to deal with an important issue: individual Euler equations depend on individual consumption which is not observable. In this paper it is shown that individual Euler equations are identified when only data on household consumption, individual labor supply and individual wages are observed. The identification strategy is then used to estimate the elasticities of substitution using the Consumer Expenditure Survey Keywords: intertemporal household decisions; intertemporal collective models; Euler equations; intertemporal elasticity of substitution (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ecm:nasm04:497 Access Statistics for this paper More papers in Econometric Society 2004 North American Summer Meetings from Econometric Society Contact information at EDIRC. |
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