000			03145cam a22004457 4500
001			w24948
003			NBER
005			20211020104434.0
006			m o d
007			cr cnu||||||||
008			210910s2018 mau fo 000 0 eng d
100	1		_aBest, Michael Carlos.
245	1	0	_aEstimating the Elasticity of Intertemporal Substitution Using Mortgage Notches / _cMichael Carlos Best, James Cloyne, Ethan Ilzetzki, Henrik Kleven.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2018.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w24948
500			_aAugust 2018.
520	3		_aUsing a novel source of quasi-experimental variation in interest rates, we develop a new approach to estimating the Elasticity of Intertemporal Substitution (EIS). In the UK, the mortgage interest rate features discrete jumps - notches - at thresholds for the loan-to-value (LTV) ratio. These notches generate large bunching below the critical LTV thresholds and missing mass above them. We develop a dynamic model that links these empirical moments to the underlying structural EIS. The average EIS is small, around 0.1, and quite homogeneous in the population. This finding is robust to structural assumptions and can allow for uncertainty, a wide range of risk preferences, portfolio reallocation, liquidity constraints, present bias, and optimization frictions. Our findings have implications for the numerous calibration studies that rely on larger values of the EIS.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD1 - Household Behavior and Family Economics _2Journal of Economic Literature class.
690		7	_aD14 - Household Saving • Personal Finance _2Journal of Economic Literature class.
690		7	_aD15 - Intertemporal Household Choice • Life Cycle Models and Saving _2Journal of Economic Literature class.
690		7	_aE2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy _2Journal of Economic Literature class.
690		7	_aE21 - Consumption • Saving • Wealth _2Journal of Economic Literature class.
690		7	_aE4 - Money and Interest Rates _2Journal of Economic Literature class.
690		7	_aE43 - Interest Rates: Determination, Term Structure, and Effects _2Journal of Economic Literature class.
690		7	_aH3 - Fiscal Policies and Behavior of Economic Agents _2Journal of Economic Literature class.
690		7	_aH31 - Household _2Journal of Economic Literature class.
700	1		_aCloyne, James.
700	1		_aIlzetzki, Ethan.
700	1		_aKleven, Henrik.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w24948.
856	4	0	_uhttps://www.nber.org/papers/w24948
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w24948
942			_2ddc _cW-PAPER
999			_c323174 _d281736