Individual Euler Equations Rather Than Household Euler Equations
Maurizio Mazzocco ()
No 497, Econometric Society 2004 North American Summer Meetings from Econometric Society
This paper focuses on the identification and estimation of the intertemporal and intratemporal elasticities of substitution for the wife and separately for the husband using individual Euler equations. To that end, the household is represented as a group of agents making joint decisions. By means of this framework, individual Euler equations are derived and used to identify and estimate the parameters of interest. The main advantage of this approach is that the key parameters can be identified for all household members and not only for the household as a whole. To implement this approach it is essential to deal with an important issue: individual Euler equations depend on individual consumption which is not observable. In this paper it is shown that individual Euler equations are identified when only data on household consumption, individual labor supply and individual wages are observed. The identification strategy is then used to estimate the elasticities of substitution using the Consumer Expenditure Survey
Keywords: intertemporal household decisions; intertemporal collective models; Euler equations; intertemporal elasticity of substitution (search for similar items in EconPapers)
JEL-codes: D1 D9 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ecm:nasm04:497
Access Statistics for this paper
More papers in Econometric Society 2004 North American Summer Meetings from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().