𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Intertemporal substitution in import demand and habit formation

✍ Scribed by David De La Croix; Jean-Pierre Urbain

Book ID
101285640
Publisher
John Wiley and Sons
Year
1998
Tongue
English
Weight
221 KB
Volume
13
Category
Article
ISSN
0883-7252

No coin nor oath required. For personal study only.

✦ Synopsis

To study non-durable import demand, we extend previous work done by Clarida (1994) and Ceglowski (1991) by considering a two-good version of the lifecycle model in which we introduce time-non-separability in the households' preferences. The model is estimated using quarterly data for the USA and France. Using the information contained in the observed stochastic and deterministic trends, we derive a cointegration restriction used to estimate curvature parameters of the instantaneous utility function. The remaining parameters are estimated in a second step by GMM. The constancy of the dierent parameters is investigated, in both the long and the short run. Habit formation turns out to be an important factor of import demand.

πŸ“œ SIMILAR VOLUMES

The cross-Euler equation approach to int
The cross-Euler equation approach to intertemporal substitution in import demand
✍ Dr Shin-Ichi Nishiyama πŸ“‚ Article πŸ“… 2005 πŸ› John Wiley and Sons 🌐 English βš– 230 KB

## Abstract This paper addresses the empirical dilemma in identifying and estimating the parameters governing the intertemporal elasticity of substitution (IES) for import demand. We propose a new concept, the cross‐Euler equation, for overcoming this empirical dilemma. IES parameters are estimated

Habit formation and college students' de
Habit formation and college students' demand for alcohol
✍ Jenny Williams πŸ“‚ Article πŸ“… 2005 πŸ› John Wiley and Sons 🌐 English βš– 159 KB

## Abstract This research investigates whether the positive association between college students' current and high‐school drinking is due to habit formation or whether it is solely due to the influence of unobserved individual characteristics that are correlated over time. The empirical investigati