Arbeitspapier
Making the case for a low intertemporal elasticity of substitution
We provide two ways to reconcile small values of the intertemporal elasticity of substitution (IES) that range between 0.35 and 0.5 with empirical evidence that the IES is large. We do this reconciliation using a model in which all agents have identical preferences and the same access to asset markets. We also conduct an encompassing test, which indicates that specifications of the model with small values of the IES are more plausible than specifications with a large IES.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2012-1
- Classification
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Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Business Fluctuations; Cycles
One, Two, and Multisector Growth Models
- Subject
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uncertainty
intertemporal elasticity of substitution
risk aversion
business cycles
growth
- Event
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Geistige Schöpfung
- (who)
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Braun, R. Anton
Nakajima, Tomoyuki
- Event
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Veröffentlichung
- (who)
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Federal Reserve Bank of Atlanta
- (where)
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Atlanta, GA
- (when)
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2012
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Braun, R. Anton
- Nakajima, Tomoyuki
- Federal Reserve Bank of Atlanta
Time of origin
- 2012
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