Journal Article
Estimating intertemporal elasticity of substitution: the case of log- linear restrictions
Abstract: Are linear regression models reliable in testing whether high expected real interest rates encourage current savings and deferred consumption? Here, a Monte Carlo test shows that a linear model yields a fairly accurate estimate and small standard error, but is highly susceptible to specification bias.
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Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Economic Review
Publication Date: 1989
Volume: 76
Issue: Nov
Pages: 3-14