This paper estimates the elasticity of intertemporal substitution in consumption (σ) by exploiting a natural experiment provided by a change in the Indian banking legislation. The new legislation ...

This is a preview. Log in through your library . Abstract As Hall (1988) notes, the magnitude of the intertemporal elasticity of substitution in consumption, σ, is "one of the central questions of ...

Citations: Vissing-Jorgensen, Annette. 2002. Limited Stock Market Participation and the Elasticity of Intertemporal Substitution. Journal of Political Economy. (4)825-853.

Empirical evidence for small developed economies finds that consumption is procyclical and as volatile as output, and real net exports are coutercyclical. Earlier studies have not been able to ...