Substitution Effects in Intertemporal Problems

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2022
Volume: 14
Issue: 3
Pages: 791-809

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a broad class of intertemporal economic problems and characterize the short-run and long-run responses of the demand for a good to a permanent increase in its market price. Depending on the interplay between self-productivity and time discounting, we show that dynamic substitution effects can generate price elasticities of opposite signs in the short run and in the long run.

Technical Details

RePEc Handle
repec:aea:aejmic:v:14:y:2022:i:3:p:791-809
Journal Field
General
Author Count
2
Added to Database
2026-01-25