Testing the Optimality of Consumption Decisions of the Representative Household: Evidence from Brazil

dc.creatorGesteira Costa, Marcos
dc.creatorCarrasco-Gutierrez, Carlos Enrique
dc.date2015-09-30
dc.date.accessioned2022-11-03T20:55:33Z
dc.date.available2022-11-03T20:55:33Z
dc.identifierhttps://bibliotecadigital.fgv.br/ojs/index.php/rbe/article/view/30037
dc.identifier.urihttps://repositorioslatinoamericanos.uchile.cl/handle/2250/5044158
dc.descriptionThis paper investigates whether there is a fraction of consumers that do not behave as fully forward-looking optimal consumers in the Brazilian economy. The generalized method of moments technique was applied to nonlinear Euler equations of the consumption-based capital assets model contemplating utility functions with time separability and non-separability. The results show that when the household utility function was modeled as constant relative risk aversion, external habits and Kreps-Porteus, estimates of the fraction of rule-of-thumb households was, respectively, 89%, 78% and 22%. According to this, a portion of disposable income goes to households who consume their current incomes in violation of the permanent income hypothesis.pt-BR
dc.formatapplication/pdf
dc.languagepor
dc.publisherEGV EPGEpt-BR
dc.relationhttps://bibliotecadigital.fgv.br/ojs/index.php/rbe/article/view/30037/55153
dc.sourceRevista Brasileira de Economia; Vol. 69 No. 3 (2015): Jul-Set; 373-387en-US
dc.sourceRevista Brasileira de Economia; v. 69 n. 3 (2015): Jul-Set; 373-387pt-BR
dc.source1806-9134
dc.source0034-7140
dc.subjectCCAPMpt-BR
dc.subjectrule of thumbpt-BR
dc.subjectaggregate consumptionpt-BR
dc.subjectpermanent income hypothesispt-BR
dc.subjectEuler equations.pt-BR
dc.titleTesting the Optimality of Consumption Decisions of the Representative Household: Evidence from Brazilpt-BR
dc.typeinfo:eu-repo/semantics/article
dc.typeinfo:eu-repo/semantics/publishedVersion
dc.typeArticlesen-US
dc.typeArtigospt-BR


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