Econometrica Vol. 61 No. 2 1993
The Interaction Between Time-Nonseparable Preferences and Time Aggregation
open access
Abstract
This paper specifies and empirically analyzes a continuous-time, linear-quadratic, representative consumer model wit h time-nonseparable preferences of several forms. Within this framewor k, the author shows how time aggregation and time nonseparabilities in preferences over consumption streams can interact. The behavior of b oth seasonally adjusted and unadjusted consumption data is consistent wi th time-nonseparable preferences if consumption goods are durable and i f individuals develop habit over the flow of services from the good. T he data do not support a version of the model that ignores time nonseparabilities in preferences and focuses solely upon time aggregation.
- DOI
- 10.2307/2951555
- Volume
- 61
- Issue
- 2
- Pages
- 353
- Sources
- bibtex:phds-export.bib crossref openalex