Cross-Country Heterogeneity in Intertemporal Substitution
Tomas Havranek (),
Zuzana Irsova () and
No wp1056, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan
We collect 2,735 estimates of the elasticity of intertemporal substitution in consumption from 169 published studies that cover 104 countries during different time periods. The estimates vary substantially from country to country, even after controlling for 30 aspects of study design. Our results suggest that income and asset market participation are the most effective factors in explaining the heterogeneity: households in developing countries and countries with low stock market participation substitute a smaller fraction of consumption intertemporally in response to changes in expected asset returns. Micro-level studies that focus on sub-samples of poor households or households not participating in asset markets also find systematically smaller values of the elasticity.
Keywords: Elasticity of intertemporal substitution; consumption; meta-analysis; Bayesian model averaging (search for similar items in EconPapers)
JEL-codes: C83 D91 E21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22) Track citations by RSS feed
Downloads: (external link)
Journal Article: Cross-country heterogeneity in intertemporal substitution (2015)
Working Paper: Cross-Country Heterogeneity in Intertemporal Substitution (2014)
Working Paper: Cross-Country Heterogeneity in Intertemporal Substitution (2013)
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:wdi:papers:2013-1056
Access Statistics for this paper
More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().