Abstract
The elasticity of intertemporal substitution (EIS) measures the willingness on the part of the consumer to substitute future consumption for present consumption. It plays a key role in the theory of consumption and saving, in particular in the life-cycle version of that theory.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Arrow, K.J. 1971. Essays in the theory of risk bearing. Amsterdam: North-Holland.
Attanasio, O.P., and M. Browning. 1995. Consumption over the life-cycle and over the business cycle. American Economic Review 85: 1118–1137.
Barro, R.J., and X. Sala-i-Martin. 1995. Economic growth. New York: McGraw-Hill.
Blundell, R., M. Browning, and C. Meghir. 1994. Consumer demand and the life-cycle allocation for household expenditures. Review of Economic Studies 61: 57–80.
Deaton, A. 1992. Understanding consumption. In Clarendon lectures in economics. Oxford: Clarendon Press.
De La Croix, D., and P. Michel. 2002. A theory of economic growth: Dynamics and policy in overlapping generations. Cambridge: Cambridge University Press.
Dixit, A.K., and J.E. Stiglitz. 1977. Monopolistic competition and optimum product diversity. American Economic Review 67: 297–308.
Hall, R.E. 1988. Intertemporal substitution in consumption. Journal of Political Economy 96: 339–357.
King, R.T., and S.T. Rebelo. 1993. Transitional dynamics and economic growth in the neoclassical model. American Economic Review 83: 908–931.
Mankiw, N.G., J.J. Rotenberg, and L. Summers. 1985. Intertemporal substitution in macroeconomics. Quarterly Journal of Economics 100: 225–281.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Bliss, C. (2018). Elasticity of Intertemporal Substitution. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2560
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_2560
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences