Search Results

SORT BY: PREVIOUS / NEXT
Keywords:elasticity of intertemporal substitution 

Report
Subjective Intertemporal Substitution

We estimate the elasticity of intertemporal substitution (EIS)—the response of expected consumption growth to changes in the real interest rate—using subjective expectations data from the New York Fed’s Survey of Consumer Expectations (SCE). This unique data set allows us to estimate the consumption Euler equation with no auxiliary assumptions on the properties of expectations, which are instead necessary when using choice data. We find a subjective EIS of about 0.5, consistent with the results of much of the literature. In addition, planned consumption displays excess sensitivity to ...
Staff Reports , Paper 734

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

Report 1 items

FILTER BY Author

FILTER BY Jel Classification

D12 1 items

D15 1 items

D84 1 items

E21 1 items

PREVIOUS / NEXT