Consumption dynamics in Russia: Estimates on microdata

Alexander Larin (), Anna Novak and Irina Khvostova ()
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Alexander Larin: Higher School of Economics, Nizhnii Novgorod, Russia
Irina Khvostova: Higher School of Economics, Nizhnii Novgorod, Russia

Applied Econometrics, 2013, vol. 32, issue 4, 29-44

Abstract: The paper investigates household consumption behavior in Russia. The model assumes that household consumption can be determined both by Euler equation and the rule of thumb. Using panel data on households (RLMS–HSE) from 2000 to 2011, we present estimates of elasticity of intertemporal substitution and show that an essential part of households consume constant part of their current income and do not solve optimization problem.

Keywords: Euler equation; microdata; rule of thumb; elasticity of intertemporal substitution; RLMS–HSE (search for similar items in EconPapers)
JEL-codes: C23 E21 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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