Identification Robust Empirical Evidence on the Open Economy IS‐Curve
在开放经济框架下，使用对弱工具变量和结构变化稳健的计量方法，发现跨期替代弹性仍然很低，实际利率变化对总收入的效应很小。
Abstract Existing empirical evidence on the Euler equation based on closed economy models suggests low responsiveness of aggregate consumption to changes in interest rates. We incorporate open economy features and consider extensions that include habit formation and hand‐to‐mouth consumers. For several open economies and applying econometric methods that are robust to weak instruments and structural changes, we continue to find low values for the elasticity of intertemporal substitution, implying a small effect of real interest rate changes on aggregate income. In some countries, structural changes are informative for identification, but otherwise aggregate data provide limited information to learn about IS‐curve specifications.