Elliot Aurissergues

ecolunch

Elliot Aurissergues

AMSE
Time preferences and aggregate consumption puzzles
Lieu

IBD Salle 16

Îlot Bernard du Bois - Salle 16

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Jeudi 25 avril 2019| 12:30 - 13:45
Contact(s)

Mathieu Faure : mathieu.faure[at]univ-amu.fr
Gaëtan Fournier : gaetan.fournier[at]univ-amu.fr

Résumé

In standard Real Business cycles or New Keynesian Models, aggregate consumption dynamics is given by the euler equation of a representative agent. This modelling assumption have long been controversial and at odds with various empirical evidence. Recent macroeconomic (the "forward guidance puzzle") and microeconomic (the existence of "wealthy hand to mouth" households) pieces of evidence have strengthened these doubts. The goal of this paper is to investigate whether alternative time preferences may help to explain those facts. I explore implications in two models. The first one is a representative agent new keynesian model with more general intertemporal preferences. The second one is a perpetual youth model with an "exotic" intertemporal utility function. This last model may provide an explanation for the existence of wealthy hand to mouth households.