Patterson, Kerry D; Pesaran, Bahram - In: The Review of Economics and Statistics 74 (1992) 4, pp. 573-84
As Robert E. Hall (1988) notes, the magnitude of the intertemporal elasticity of substitution in consumption is "one of the central questions of macroeconomics." Do higher expected real interest rates lead to deferred consumption? The authors extend Hall's methodology and model, and compare...