Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-27T09:54:15.381Z Has data issue: false hasContentIssue false
  • English
  • Français

SUBSTITUTION AND REVENUE EFFECTS WITH ENDOGENOUS IMPATIENCE

Published online by Cambridge University Press:  16 July 2002

Jean-Pierre Drugeon  and
Bertrand Wigniolle
Jean-Pierre Drugeon
Affiliation:
CNRS-EVREQVA
Bertrand Wigniolle
Affiliation:
EVREQVA, University of Paris I–Panthéon-Sorbonne & LIBRE, University of Franche-Comté
Get access Rights & Permissions [Opens in a new window]

Abstract

Building on a nonlinear additively separable representation for the generator of preferences, this article provides an extensive characterization of intertemporal consumption—leisure arbitrages with an endogenous measure of impatience. A joint characterization of the comparative dynamics of consumption and leisure is undertaken. An analytical approach first puts in evidence a classical Slutsky decomposition between revenue and substitution effects after various perturbations. Those conclusions are at a second stage illustrated by a three-dimensional geometric argument.

Keywords

Endogenous Rates of Time PreferenceSubstitution EffectsRevenue EffectsConsumptionLeisureIntertemporal Arbitrages
Type
NOTES
Information
Macroeconomic Dynamics , Volume 6 , Issue 4 , September 2002 , pp. 573 - 595
Copyright
© 2002 Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)