Intratemporal nonseparability between housing and nondurable consumption: Evidence from reinvestment in housing stock

Natalia Khorunzhina

Journal of Monetary Economics, 2021, vol. 117, issue C, 658-670

Abstract: Using the data on maintenance expenditures and self-assessed house value, I separate the measure of individual housing stock and house prices, and use these data for testing whether nondurable consumption and housing are characterized by intratemporal nonseparability in households’ preferences. I find evidence in favor of intratemporal dependence between total nondurable consumption and housing. My findings indicate the elasticity of intratemporal substitution between nondurable consumption and housing is higher than the elasticity of intertemporal substitution for composite consumption bundles. Moreover, assuming CES utility, my results are indicative about complementarity between nondurable consumption and housing in the intratemporal preferences.

Keywords: Intratemporal nonseparability; Housing; Nondurable consumption (search for similar items in EconPapers)
JEL-codes: C51 D12 D13 E21 R21 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304393220300489
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Intratemporal nonseparability between housing and nondurable consumption: evidence from reinvestment in housing stock (2019)
Working Paper: Intratemporal Nonseparability Between Housing and Nondurable Consumption:Evidence from Reinvestment in Housing Stock (2019)
Working Paper: Intratemporal Nonseparability between Housing and Nondurable Consumption: Evidence from Reinvestment in Housing Stock (2019)
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:eee:moneco:v:117:y:2021:i:c:p:658-670

DOI: 10.1016/j.jmoneco.2020.04.001

Access Statistics for this article

Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser

More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().