Is consumption growth consistent with intertemporal optimization?: evidence from the consumer expenditure survey
In this paper we show that some of the predictions of models of consumer intertemporal optimization are not inconsistent with the patterns of non-durable expenditure observed in US household-level data. Our results and our approach are new in several respects. First, we use the only US micro data se...
Gespeichert in:
| Hauptverfasser: | , |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Cambridge, Mass.
1994
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| Schriftenreihe: | National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series
4795 |
| Schlagworte: | |
| Zusammenfassung: | In this paper we show that some of the predictions of models of consumer intertemporal optimization are not inconsistent with the patterns of non-durable expenditure observed in US household-level data. Our results and our approach are new in several respects. First, we use the only US micro data set which has direct and complete information on household consumption. The microeconomic data sets used in most of the consumption literature so far contained either very limited information on consumption (like the PSID) or none at all, in which case consumption had to be obtained indirectly from income and changes in assets. Second, we propose a flexible and novel specification of preferences which is easily estimable and allows a general treatment jof multiple commodities. We show that aggregation over commodities can be important, both theoretically and in practice. Third, we present empirical results that show that it is possible to find a reasonably simple specification of preferences, which controls for the effects of changes in demographics and labor supply behavior over the life cycle and which is not rejected by the available data. On our preferred specification, we obtain sharp estimates of key behavioral parameters (including the elasticity of intertemporal substitution) and no rejections of theoretical restrictions. Our results contrast sharply with most of the previous evidence, which has typically been interpreted as rejection of the theory. We show that previous rejections can be explained by the simplifying assumptions made to derive empirically tractable equations. We also show that results obtained using food consumption or aggregate data can be extremely misleading. |
| Beschreibung: | 30 S. graph. Darst. |
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| 490 | 1 | |a National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |v 4795 | |
| 520 | |a In this paper we show that some of the predictions of models of consumer intertemporal optimization are not inconsistent with the patterns of non-durable expenditure observed in US household-level data. Our results and our approach are new in several respects. First, we use the only US micro data set which has direct and complete information on household consumption. The microeconomic data sets used in most of the consumption literature so far contained either very limited information on consumption (like the PSID) or none at all, in which case consumption had to be obtained indirectly from income and changes in assets. Second, we propose a flexible and novel specification of preferences which is easily estimable and allows a general treatment jof multiple commodities. We show that aggregation over commodities can be important, both theoretically and in practice. Third, we present empirical results that show that it is possible to find a reasonably simple specification of preferences, which controls for the effects of changes in demographics and labor supply behavior over the life cycle and which is not rejected by the available data. On our preferred specification, we obtain sharp estimates of key behavioral parameters (including the elasticity of intertemporal substitution) and no rejections of theoretical restrictions. Our results contrast sharply with most of the previous evidence, which has typically been interpreted as rejection of the theory. We show that previous rejections can be explained by the simplifying assumptions made to derive empirically tractable equations. We also show that results obtained using food consumption or aggregate data can be extremely misleading. | ||
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| 650 | 7 | |a Huishoudingen |2 gtt | |
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| id | DE-604.BV009904276 |
| illustrated | Illustrated |
| indexdate | 2024-07-09T17:42:56Z |
| institution | BVB |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-006559391 |
| oclc_num | 30955104 |
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| physical | 30 S. graph. Darst. |
| publishDate | 1994 |
| publishDateSearch | 1994 |
| publishDateSort | 1994 |
| record_format | marc |
| series | National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |
| series2 | National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |
| spelling | Attanasio, Orazio P. 1959- Verfasser (DE-588)129180084 aut Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey Orazio P. Attanasio ; Guglielmo Weber Cambridge, Mass. 1994 30 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 4795 In this paper we show that some of the predictions of models of consumer intertemporal optimization are not inconsistent with the patterns of non-durable expenditure observed in US household-level data. Our results and our approach are new in several respects. First, we use the only US micro data set which has direct and complete information on household consumption. The microeconomic data sets used in most of the consumption literature so far contained either very limited information on consumption (like the PSID) or none at all, in which case consumption had to be obtained indirectly from income and changes in assets. Second, we propose a flexible and novel specification of preferences which is easily estimable and allows a general treatment jof multiple commodities. We show that aggregation over commodities can be important, both theoretically and in practice. Third, we present empirical results that show that it is possible to find a reasonably simple specification of preferences, which controls for the effects of changes in demographics and labor supply behavior over the life cycle and which is not rejected by the available data. On our preferred specification, we obtain sharp estimates of key behavioral parameters (including the elasticity of intertemporal substitution) and no rejections of theoretical restrictions. Our results contrast sharply with most of the previous evidence, which has typically been interpreted as rejection of the theory. We show that previous rejections can be explained by the simplifying assumptions made to derive empirically tractable equations. We also show that results obtained using food consumption or aggregate data can be extremely misleading. Consumptieve bestedingen gtt Huishoudingen gtt Consumption (Economics) Weber, Guglielmo Verfasser (DE-588)127824405 aut National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 4795 (DE-604)BV002801238 4795 |
| spellingShingle | Attanasio, Orazio P. 1959- Weber, Guglielmo Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series Consumptieve bestedingen gtt Huishoudingen gtt Consumption (Economics) |
| title | Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey |
| title_auth | Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey |
| title_exact_search | Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey |
| title_full | Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey Orazio P. Attanasio ; Guglielmo Weber |
| title_fullStr | Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey Orazio P. Attanasio ; Guglielmo Weber |
| title_full_unstemmed | Is consumption growth consistent with intertemporal optimization? evidence from the consumer expenditure survey Orazio P. Attanasio ; Guglielmo Weber |
| title_short | Is consumption growth consistent with intertemporal optimization? |
| title_sort | is consumption growth consistent with intertemporal optimization evidence from the consumer expenditure survey |
| title_sub | evidence from the consumer expenditure survey |
| topic | Consumptieve bestedingen gtt Huishoudingen gtt Consumption (Economics) |
| topic_facet | Consumptieve bestedingen Huishoudingen Consumption (Economics) |
| volume_link | (DE-604)BV002801238 |
| work_keys_str_mv | AT attanasiooraziop isconsumptiongrowthconsistentwithintertemporaloptimizationevidencefromtheconsumerexpendituresurvey AT weberguglielmo isconsumptiongrowthconsistentwithintertemporaloptimizationevidencefromtheconsumerexpendituresurvey |