Intertemporal Substitution in Consumption
Robert E Hall
Journal of Political Economy, 1988, vol. 96, issue 2, 339-57
Abstract:
One of the important determinants of the response of saving and consumption to the real interest rate is the ela sticity of intertemporal substitution. That elasticity can be measure d by the response of the rate of change of consumption to changes in the expected real interest rate. A detailed study of data for the twe ntieth-century United States shows no strong evidence that the elasti city of intertemporal substitution is positive. Earlier findings of s ubstantially positive elasticities are reversed when appropriate esti mation methods are used. Copyright 1988 by University of Chicago Press.
Date: 1988
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Working Paper: Intertemporal Substitution in Consumption (1981) 
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:96:y:1988:i:2:p:339-57
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