Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/102581 
Year of Publication: 
2013
Series/Report no.: 
IES Working Paper No. 15/2013
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
I examine 2,735 estimates of the elasticity of intertemporal substitution in consumption (EIS) reported in 169 published studies. The literature shows strong publication bias: researchers report negative and insignificant estimates less often than they should, which pulls the mean estimate up by about 0.5. When I correct the mean for the bias, for macro estimates I get zero, even though the reported t - statistics are on average two. The corrected mean of micro estimates for asset holders is around 0.3-0.4. Calibrations of the EIS greater than 0.8 are inconsistent with the bulk of the empirical evidence.
Subjects: 
Elasticity of intertemporal substitution
consumption
publication bias
meta-analysis
JEL: 
E21
C83
Document Type: 
Working Paper

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