Gomes, Fábio Augusto Reis; Paz, Lourenço S. - In: Journal of Macroeconomics 36 (2013) C, pp. 63-75
The elasticity of intertemporal substitution (EIS) is one of the key parameters in the Economics and Finance literature. It is usually estimated by means of the consumer’s Euler Equation using an instrumental variable approach, and the estimates are usually zero or close to zero. Nevertheless,...