INTERTEMPORAL SUBSTITUTION IN MACROECONOMICS - CONSUMPTION, LABOR SUPPLY, AND MONEY DEMAND

• 成果类型: Note
• 署名作者: DUTKOWSKY, DH; FOOTE, WG
• 署名单位: Le Moyne College
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.2307/2109667
• 发表日期: 1992-05
• 页码: 333-338
• 关键词: expectations; models; income; time

摘要

This paper introduces money into the consumption-leisure based intertemporal substitution model. The optimization problem poses that the household chooses consumption, labor supply, money demand, and wealth. Holdings of real money balances along with consumption and leisure determine utility. The constraint decomposes wealth into money and an alternative asset. We estimate the derived semi-reduced form equations using per capita U.S. data. The findings indicate significant interest rate intertemporal substitution in labor supply, but weak effects in consumption and money demand. The empirical evidence supports contemporaneous nonseparability of consumption, money, and leisure within a well-behaved underlying utility function.