Quasi-geometric consumers: panel data evidence

• Autores: M. Dolores Collado Vindel, Serguei Maliar, Lilia Maliar
• Localización: Working papers = Documentos de trabajo: Serie AD, Nº. 9, 2003, 16 págs.
• Idioma: inglés
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• Resumen

  • This paper examines the empirical relevance of an intertemporal model of consumption with dynamically inconsistent decision makers. The model has testable implications concerning the relation between the consumers' degrees of short-run patience (self-control) and their consumption-saving decisions. Using Spanish panel data on household expenditure, we estimate the Euler equation derived from the model. We find evidence in favor of consumers' preferences being time inconsistent. Moreover, our results indicate that there are significant differences in the degrees of short-run patience across households.