Intratemporal Substitution and Government Spending
在永久收入模型中引入政府支出对消费的直接影响，利用协整约束估计出政府与私人消费的期内替代弹性约为0.9，为模型提供了实证支持。
In this paper, we examine the idea that a general model of consumption should allow for the direct effect of government expenditures in a two-good permanent-income model. We show, given an assumed preference specification, that there is a cointegration restriction implied by an intraperiod first-order condition of the model. This restriction leads to a linear deterministic cointegration relation between government spending, private consumption, and their relative price that is supported by the data. Using this restriction to recover the preference parameters, we estimate the intraperiod elasticity of substitution for both government and private consumption to be about 0.9. Overall, we find consistent empirical evidence in support of our model. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology