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Poor people have, on average, a higher marginal propensity to consume. One (out of many) possible explanations for this is that poverty affects impatience. This would have important implications for monetary and fiscal policy. While some macroeconomists simply assume lower individual discount...
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We estimate the elasticity of intertemporal substitution (EIS) - the elasticity of expected consumption growth with … Consumer Expectations (SCE). This dataset is unique, since it includes consumers' expectations of both consumption growth and … subjective version of the consumption Euler equation, without having to take a stand on the process of expectation formation. Our …
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