Abstract/Details

Estimating and testing intertemporal preferences: A unified framework for consumption, work and savings


2005 2005

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Abstract (summary)

This dissertation contributes to the theory of intertemporal duality. A Frisch demand system derived from a consumer profit function is developed rationalizing consumption, labor supply and savings choices of households consistent with intertemporal maximization. A new functional form with many appealing properties is introduced. This functional form has the generality of rank 3 demand systems and additionally has the property that the conditioning variable of Frisch demand systems, the unobserved price of marginal utility, is solved explicitly via the inversion of the intertemporal budget constraint. This new functional from is applied to selected single headed households over a five year span using information from five waves of the Panel Study of Income Dynamics (PSID) from 1985 to 1989. Household wealth from the beginning and end of this period, together with income information over this observed period is used to derive aggregate household consumption. The connection between commonly maintained primal separability restrictions and the full matrix of price cross price Frisch elasticites is demonstrated. A test of consumption-labor and time separability suggests that these restrictions ought to be rejected. Cross price Frisch elasticities are found not to equal zero and this in turn affects all estimates of consumption, labor supply and saving elasticities.

Indexing (details)


Subject
Economics;
Labor economics;
Economic theory;
Consumption;
Savings;
Labor supply;
Households;
Wealth;
Studies
Classification
0501: Economics
0510: Labor economics
0511: Economic theory
Identifier / keyword
Social sciences; Consumption; Estimating; Intertemporal preferences; Savings; Work
Title
Estimating and testing intertemporal preferences: A unified framework for consumption, work and savings
Author
Chin, William HawkLee
Number of pages
129
Publication year
2005
Degree date
2005
School code
0097
Source
DAI-A 67/01, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9780542477393, 0542477394
Advisor
Kreider, Brent
University/institution
Iowa State University
University location
United States -- Iowa
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
3200409
ProQuest document ID
304989627
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/304989627
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