@article{Blundell:268358, recid = {268358}, author = {Blundell, Richard and Browning, Martin and Meghir, Costas}, title = {A Microeconometric Model of Intertemporal Substitution and Consumer Demand }, address = {1989-08-08}, number = {2068-2018-745}, pages = {38}, year = {1989}, abstract = {In this paper we investigate the relationship between within-period preferences and the degree of intertemporal substitution. We first present a theoretical discussion which argues that the form of within-period preferences and the way these differ across consumers may have important consequences for the formulation and specification of intertemporal models. We then apply this methodology to a detailed study of disaggregate household expenditure patterns using a pooled cross-section of some 70,000 households across 15 years. Our objective is to assess the degree of intertemporal substitution across different household types avoiding aggregation bias and accounting for nonadditive within-period preferences and nonlinearity in Engel curves. }, url = {http://ageconsearch.umn.edu/record/268358}, doi = {https://doi.org/10.22004/ag.econ.268358}, }