This paper reviews the status quo of the empirical literature about the elasticity of
intertemporal substitution (EIS) in consumption. Aiming to answer the question what the true …

We evaluate the impact of the 2009 Cash for Clunkers program on short-and medium-run
auto purchases. Our empirical strategy exploits variation across US cities in ex ante …

In estimating, the intertemporal elasticity of substitution, Hall finds that, when one takes
account of time aggregation, point estimates are small and not significantly different from …

We estimate a time-varying “natural” rate of interest (TVNRI) for a synthetic euro area over
the period 1979Q1–2004Q4 using a small macroeconomic model, broadly following a …

We employ a model of precautionary saving to study why household saving rates are high in
China and low in the United States. The use of recursive preferences gives a convenient …

This paper investigates the relationship between government spending and private
consumption. The general framework is a cointegration approach of Ogaki (1992) used to …

This chapter develops and studies a tough love model of intergenerational altruism. We
model tough love by modifying the Barro-Becker standard altruism model in two ways. First …

The two major candidates in the 2016 presidential election made sharply different proposals
for reforming the Federal tax code. Donald Trump proposed cutting taxes to provide “tax …

This paper extends the production-based equilibrium model studied by Zhang et al.(2012),
in which the stock return has constant volatility and the investor has a constant relative risk …

By replacing the current income tax with a national sales tax, the FairTax proposal would
end the double taxation of saving inherent in the existing tax code and, by doing so, raise …