In this paper, we use long-run annual data to estimate the intertemporal elasticity of substitution while accounting for the intra-temporal substitution between nondurable consumption goods and durable consumption goods. We apply a two-step procedure that combines a cointegration approach to preference parameter estimation with Generalized Method of Moments.
- Durable Goods
- Generalized Method of Moments
- Intertemporal Elasticity of Substitution
ASJC Scopus subject areas
- Economics and Econometrics