 Comparative Statics for Dynamic Models: Empirical Implications of the Frisch DecompositionAnita Chaudhuri International Economic Review, 1996, vol. 37, issue 1, 103-14 Abstract: In this paper, the author establishes a link between static and dynamic models using a new set of results related to the Frisch (1959) demand function and a generalization of the Frisch decomposition of demand, which is an alternative to the familiar Slutsky decomposition. It was previously believed that estimates obtained from static models do not directly provide implications for life-cycle behavior. However, the author develops a methodology for inferring intertemporal elasticities of substitution in a dynamic system from parameter estimates of an 'appropriate' static system. This methodology applies to general multiconstraint optimization problems where some constraints may be nonlinear. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association. Date: 1996 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:ier:iecrev:v:37:y:1996:i:1:p:103-14 Ordering information: This journal article can be ordered from Access Statistics for this article International Economic Review is currently edited by Harold L. Cole More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC. |
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