This paper integrates seemingly disjoint studies on consumer behavior in micro and macro analyses via the intertemporal two-stage budgeting procedure with durable goods and liquidity constraints. The model accounts for the influences of nondurables consumption, commodity prices, and durables...

This paper proposes a cointegration approach to testing the validity long-run equilibrium in production, where capital and labour are taken as quasi-fixed inputs. Previous studies consider only capital as the quasi-fixed input and do not take account of the time series properties of the...

This paper examines the role of commodity own rates of interest in intertemporal analysis of consumer behaviour and presents a disaggregate analysis of intertemporal substitution in commodity demand and consumption. Commodity rates of interest are defined from the Euler equations implied by the...

This paper presents an alternative characterization of separability based on elasticities of complementarity. Earlier studies have formulated separability restrictions in terms of the Allen elasticities of substitution. The Hicks and Antonelli elasticities of complementarity are presented to...

This article investigates the dependence structure of income distribution in the US by providing two approaches -- one regression-based and the other copula-based -- to reveal new information about income dependence. The system of Seemingly Unrelated Regressions (SUR) is estimated for both...

This article presents a new, cointegration approach to test a tax arbitrage opportunity in holding municipal bonds. Noticing that the variables of interest are nonstationary, two alternative cointegration tests are used to examine the relationship that may exist (1) between the yield on...

This paper presents new evidence on the estimation of the demand for education. Unlike previous studies, this study uses the translog-LES indirect utility function to analyze the demand for education within a multicommodity framework for annual U.S. consumption expenditures for the period...

This note examines several alternative specifications of the consumer's intertemporal budget constraint and shows that while different specifications give the same first-order conditions, they produce different results with respect to measures of wealth and saving and hence consumption when...