Substitution Effects in Intertemporal Problems

• 成果类型: Article
• 署名作者: Dragone, Davide; Vanin, Paolo
• 署名单位: University of Bologna
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20200121
• 发表日期: 2022
• 页码: 791-809
• 关键词: life-cycle; comparative dynamics; optimal taxation; HEALTH; consumption; income

摘要

We consider a broad class of intertemporal economic problems and characterize the short-run and long-run responses of the demand for a good to a permanent increase in its market price. Depending on the interplay between self-productivity and time discounting, we show that dynamic substitution effects can generate price elasticities of opposite signs in the short run and in the long run.