Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83388
Authors: 
Havránek, Tomáš
Horváth, Roman
Iršová, Zuzana
Rusnak, Marek
Year of Publication: 
2013
Series/Report no.: 
IES Working Paper 11/2013
Abstract: 
We collect 2,735 estimates of the elasticity of intertemporal substitution in consumption from 169 published studies that cover 104 countries during different time periods. The estimates vary substantially from country to country, even after controlling for 30 aspects of study design. Our results suggest that income and asset market participation are the most effective factors in explaining the heterogeneity: households in rich countries and countries with high stock market participation substitute a larger fraction of consumption intertemporally in response to changes in expected asset returns. Micro-level studies that focus on sub-samples of rich households or asset holders also find systematically larger values of the elasticity.
Subjects: 
elasticity of intertemporal substitution
consumption
metaanalysis
Bayesian model averaging
JEL: 
C83
D91
E21
Document Type: 
Working Paper
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