Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245889 
Year of Publication: 
2020
Series/Report no.: 
Quaderni - Working Paper DSE No. 1147
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
We consider a broad class of intertemporal economic problems and we characterize the short and long-run response 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 sign in the short and in the long run.
Subjects: 
Intertemporal substitution
Price elasticity
Tax reforms
JEL: 
D11
D91
I00
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
804.1 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.