INTERTEMPORAL SUBSTITUTION AND LAMBDA-CONSTANT COMPARATIVE STATICS

• 成果类型: Article
• 署名作者: MCLAUGHLIN, KJ
• 署名单位: University of Rochester
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(94)01182-A
• 发表日期: 1995
• 页码: 193-213
• 关键词: INTERTEMPORAL CHOICE; consumption; labor supply

摘要

This paper characterizes intertemporal substitution along intertemporal consumption profiles. A precise definition of the intertemporal elasticity of substitution is presented and compared to intertemporal analogs of the Hicks-Alien and direct elasticities of substitution, and the marginal-utility-of-wealth (or lambda-) constant own-price elasticity of demand. In a model with perfect foresight, I establish that lambda-constant comparative statics accurately characterizes intertemporal substitution if and only if lifetime utility is intertemporally additive. I also demonstrate the usefulness of lambda-constant comparative statics in characterizing intertemporal substitution in models without time separability or perfect foresight.