Estimating and testing intertemporal preferences: A unified framework for consumption, work and savings

William Chin

GE, Growth, Math methods from University Library of Munich, Germany

Abstract: Five waves of the Panel Study of Income Dynamics (PSID), 1985-1989 including both wealth supplements, are used to construct an intertemporal budget constraint for selected single headed households. A new functional form of the dual consumer profit function rationalizing consumption, labor supply and savings is specified, estimated and used to test commonly maintained separability hypotheses. Both consumption- labor and time separability are rejected. Cross-price Frisch elasticities are found not to equal zero and this in turns affects all estimates of consumption, labor supply and saving elasticities. This paper contains new results from a previous paper submitted to EconWPA 12/16/03.

Keywords: intertemporal; consumption; labor; labour; wealth; savings; PSID; Panel Study of Income Dynamics; consumer profit function (search for similar items in EconPapers)
JEL-codes: D11 D12 J22 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2004-09-12
New Economics Papers: this item is included in nep-mic
Note: Type of Document - pdf; pages: 64. PDF file, 64 Pages, 9 Tables, 3 Figures.
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpge:0409002

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