An assessment of the relative importance of real interest rates, inflation, and term premiums in determining the prices of real and nominal U.K. bonds
Article Abstract:
The causes of unexpected changes in the prices of real and nominal bonds is examined. Furthermore, the study aims to evaluate the scope to which relative yields on real and nominal bonds can be utilized to deduce market forecasts of inflation. It was established that real-rate news fails to impact the price of long-term real bonds. It appears that real bonds provide an abundant source of information regarding how expectations of inflation shift.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1997
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The intertemporal elasticity of substitution in consumption in the United States and the United Kingdom
Article Abstract:
A 1988 research reports that the magnitude of the intertemporal elasticity of substitution in consumption is a fundamental macroeconomic question. The relationship between higher expected real interest rates and deferred consumption is presented. The research results are extended to cover a study of consumption patterns in the US and the UK. The moving average process and consumer behavior is then measured for both countries.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1992
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Rate of time preference, intertemporal elasticity of substitution, and level of wealth
Article Abstract:
The rate of time preference (RTP) and the intertemporal elasticity of substitution (IES) influence intertemporal consumption decisions. A model in which RTP and IES are permitted to vary across rich and poor households employing household-level panel data from India. Empirical results have supported the concept that the RTP is stable among poor and rich households, but the IES is bigger for the richer than the poor.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1997
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