EconPapers    
Economics at your fingertips  
 

The Intertemporal Allocation of Expenditure on Non-durables, Services, and Durables

Martin Browning

Canadian Journal of Economics, 1989, vol. 22, issue 1, 22-36

Abstract: This paper presents estimates of the parameters of a consumption function for U.S. quarterly, seasonally-unadjusted data on nondurables, services, and durables. The theoretical novelty in the approach the author presents is in the derivation of the consumption function from an underlying many-goods allocation problem. Applying this model with an appropriate estimator to the data, he finds that (1) the (homogeneity) restrictions suggested by theory are not rejected; (2) there is no evidence of excess sensitivity to income; (3) there is no evidence to suggest that agents cannot adjust their durable stocks as they would wish; and (4) the intertemporal substitution elasticity is not well-determined.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819890 ... IAOEO%3E2.0.CO%3B2-8 (text/html)
only available to JSTOR subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:22:y:1989:i:1:p:22-36

Ordering information: This journal article can be ordered from
https://economics.ca/en/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

 
Page updated 2019-07-27
Handle: RePEc:cje:issued:v:22:y:1989:i:1:p:22-36