On the Aggregation of Euler Equations for Consumption in Simple Overlapping-Generations Models
Bibliographic Data
| ID | 9725470 |
|---|---|
| Authors | Orazio P Attanasio, Orazio Attanasio (0000-0003-3693-4393), Guglielmo Weber (0000-0002-2137-9676) |
| Year | 1995 |
| Volume | 62 |
| Issue | 248 |
| Pages | 565 |
| Publication date | 1995-11-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2554678 |
| OpenAlex | W2029059526 |
| Language | EN |
| Citations received | 1 |
If consumers have finite lives, the aggregate consumption growth equation is affected by entries and exits (births and deaths). We use two- and three-period overlapping-generations (OLG) models to show that entries and exits produce a relationship between aggregate consumption growth and the interest rate that is fundamentally different from the individual Euler equation for consumption. If aggregate data are used to estimate an 'aggregate' Euler equation, under plausible assumptions we show that the estimate of the elasticity of intertemporal substitution is downward biased and that consumption growth exhibits excess sensitivity to labour income
Consumption (sociology) · Econometrics · Economics · Epistemology · Euler equations · Euler's formula · Mathematical analysis · Mathematical economics · Simple (philosophy) · Applied Mathematics · Economic Growth and Productivity · Economic theories and models · Fiscal Policy and Economic Growth · Mathematics · Philosophy
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |