BibTeX
@MISC{Dalen_intertemporalsubstitution,
author = {Hendrik P. Van Dalen and Peace Evidence From The},
title = {Intertemporal Substitution in War},
year = {}
}
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Abstract
In this paper we present estimates of individual value of public consumption and the inter-temporal substitution elasticity by means of the Euler-equation approach. Historical data for the United Kingdom covering the period 1830-1990 are used to measure the effect of public consumption private consumption. The U.K. intertemporal substitution elasticity is0.24 and the shares of private and public consumption i the aggregate consumption bundle are 92 % and 8%, respectively. The positive valuation applies only to wartime years. In peacetime years government and private consumption goods can at best be described as independent goods. 1.
Keyphrases
intertemporal substitution public consumption independent good historical data individual value euler-equation approach united kingdom public consumption private consumption inter-temporal substitution elasticity positive valuation present estimate peacetime year government aggregate consumption bundle u.k. intertemporal substitution elasticity is0 private consumption good
