Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Household Choices in Equilibrium

Sumru Altug and Robert A. Miller
Econometrica
Vol. 58, No. 3 (May, 1990), pp. 543-570
Published by: The Econometric Society
DOI: 10.2307/2938190
Stable URL: http://www.jstor.org/stable/2938190
Page Count: 28
  • Read Online (Free)
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Household Choices in Equilibrium
Preview not available

Abstract

This paper is an empirical investigation of equilibrium restrictions on household consumption and labor supply. It posits, estimates, and tests a model where the equilibrium behavior of agents sometimes leads them to locate on the boundary of their respective choice sets. The key to our framework is a simple factor structure which characterizes the effects of market forces on household choices and returns to financial assets. It can be rationalized by the two assumptions that household allocations are Pareto optimal and that the labor market is competitive. If markets were complete, then the factors would represent real wages to standardized labor, prices for the future contingent claims which are ultimately realized, and the marginal utilities of wealth to households. Our empirical work estimates household preferences and tests how well this parsimonious factor structure represents panel data on married couples and time series data on asset returns. Most of our estimates are roughly comparable to those found in previous work; we find no evidence against the simple factor representation, and cannot reject the intertemporal capital asset pricing model.

Page Thumbnails

  • Thumbnail: Page 
543
    543
  • Thumbnail: Page 
544
    544
  • Thumbnail: Page 
545
    545
  • Thumbnail: Page 
546
    546
  • Thumbnail: Page 
547
    547
  • Thumbnail: Page 
548
    548
  • Thumbnail: Page 
549
    549
  • Thumbnail: Page 
550
    550
  • Thumbnail: Page 
551
    551
  • Thumbnail: Page 
552
    552
  • Thumbnail: Page 
553
    553
  • Thumbnail: Page 
554
    554
  • Thumbnail: Page 
555
    555
  • Thumbnail: Page 
556
    556
  • Thumbnail: Page 
557
    557
  • Thumbnail: Page 
558
    558
  • Thumbnail: Page 
559
    559
  • Thumbnail: Page 
560
    560
  • Thumbnail: Page 
561
    561
  • Thumbnail: Page 
562
    562
  • Thumbnail: Page 
563
    563
  • Thumbnail: Page 
564
    564
  • Thumbnail: Page 
565
    565
  • Thumbnail: Page 
566
    566
  • Thumbnail: Page 
567
    567
  • Thumbnail: Page 
568
    568
  • Thumbnail: Page 
569
    569
  • Thumbnail: Page 
570
    570