Rule-of-thumb households in the Czech Republic

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F12%3A10125481" target="_blank" >RIV/00216208:11230/12:10125481 - isvavai.cz</a>
Result on the web
<a href="http://mme2012.opf.slu.cz/proceedings/pdf/002_Adam.pdf" target="_blank" >http://mme2012.opf.slu.cz/proceedings/pdf/002_Adam.pdf</a>
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
Rule-of-thumb households in the Czech Republic
Original language description
Most modern macroeconomic models assume that households smooth consumption over their lifetime. However, there is substantial evidence that a sizable fraction of households faces liquidity constraints, thus the as- sumption of consumption smoothing is not met. This might be one of the reasons why the predictions of some models fail, for example those concerning eects of scal policy on consumption. To overcome this problem, some models assume that only a part of households (Ricardian households) smooth their con- sumption and the other part (rule-of-thumb households) consume their whole current disposable income. This paper estimates the fraction of rule-of-thumb households in the Czech Republic, based on the modied Euler equation using instrumental variables (approach by Campbell and Mankiw [4]). Furthermore, potential time variation in this parameter is investigated using the two-step strategy proposed by Kim [10] that deals with the endogeneity problem. Our results suggest that the s
Czech name
—
Czech description
—

Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of 30th International Conference Mathematical Methods in Economics
ISBN
978-80-7248-779-0
ISSN
—
e-ISSN
—
Number of pages
6
Pages from-to
8-13
Publisher name
Silesian University in Opava
Place of publication
Opava
Event location
Karviná
Event date
Sep 11, 2012
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
—

Similar results(10)