| 来源类型 | Discussion paper
|
| 规范类型 | 论文
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| 来源ID | DP12812
|
| DP12812 Complementarity, Income, and Substitution: A U(C,N) Utility for Macro |
| Florin Bilbiie
|
| 发表日期 | 2018-03-23
|
| 出版年 | 2018
|
| 语种 | 英语
|
| 摘要 | In business-cycle, macro models the elasticity of intertemporal substitution (EIS) governs the economy's response to demand shocks and policy changes ("multipliers"). With general non-separable preferences, the EIS is determined by consumption-hours complementarity and the income effect on hours. Complementarity helps generate business-cycle co-movement following demand shocks, fiscal multipliers, and allows reconciling low EIS with low income-wealth effects. Yet existing utility functions restrict either complementarity, or income effects---or both---and artificially imply that EIS is exclusively a function of either. I propose a novel utility function where both complementarity and the income effect are arbitrary and can be calibrated separately. |
| 主题 | Monetary Economics and Fluctuations
|
| 关键词 | Consumption-hours complementarity
Business-cycle co-movement
Income and wealth effects
Elasticity of intertemporal substitution
Fiscal multipliers
News shocks
|
| URL | https://cepr.org/publications/dp12812
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/541622
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推荐引用方式
GB/T 7714 |
Florin Bilbiie. DP12812 Complementarity, Income, and Substitution: A U(C,N) Utility for Macro. 2018.
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