Rule-of-thumb households in the Czech Republic

Kód výsledku v 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>

Výsledek na webu

<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

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Jazyk výsledku

angličtina

Název v původním jazyce

Rule-of-thumb households in the Czech Republic

Popis výsledku v původním jazyce

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

Název v anglickém jazyce

Rule-of-thumb households in the Czech Republic

Popis výsledku anglicky

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

Druh

D - Stať ve sborníku

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2012

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of 30th International Conference Mathematical Methods in Economics

ISBN

978-80-7248-779-0

ISSN

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e-ISSN

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Počet stran výsledku

6

Strana od-do

8-13

Název nakladatele

Silesian University in Opava

Místo vydání

Opava

Místo konání akce

Karviná

Datum konání akce

11. 9. 2012

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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