Arbeitspapier

Are Predicted Lifetime Consumption Profiles Robust with respect to Model Specifications?

Structural models of lifetime labour supply and consumption require functional specifications of preferences as well as other assumptions that can be difficult to assess a priori. Misspecifications of the model might lead to biases in the estimates of preferences, that may influence the simulation results obtained from the model. In this paper we study to what extent predicted distributions of lifetime consumption are robust with respect to the specification of preferences. The simulation results show that simulated distributions of lifetime consumption strongly depend on the estimate of the intertemporal substitution rate as well as on the estimate of the time preference rate relative to the marginal interest rate net of taxes.

Sprache
Englisch

Erschienen in
Series: Discussion Papers ; No. 308

Klassifikation
Wirtschaft
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Model Evaluation, Validation, and Selection
Consumer Economics: Empirical Analysis
Thema
Lifetime preferences
life cycle consumption
testing modelspesifications
empirical models.

Ereignis
Geistige Schöpfung
(wer)
Kornstad, Tom
Ereignis
Veröffentlichung
(wer)
Statistics Norway, Research Department
(wo)
Oslo
(wann)
2001

Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kornstad, Tom
  • Statistics Norway, Research Department

Entstanden

  • 2001

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