Intertemporal consumer behaviour under structural changes in income

Savings, pension rights and taxation

“…This is rather long, compared with the three quarters found by Winder and Palm (1989), but considerably shorter than expected life time, as life-cycle theory assumes. The intertemporal elasticity of substitution is estimated at 0.8.…”

“…The saving model is closely related to the models by Keller (1977), Okker and Den Haan (1987) and Winder and Palm (1989). It approximates the saving part of the Keller model in case the planning horizon (n) goes to infinity and pension rights and the subsistence level do not contribute to the explanation (q~ = ~ = 0).…”

“…Since nobody knows his future income pattern, people will be particularly guided by the income pattern in a reasonably surveyable planning period. Econometric research by Winder and Palm (1989) an intertemporal consumption model with a short, moving horizon is maintained for The Netherlands and that a common life-cycle model is rejected. However, one drawback of their theoretical model is that no desired nonhuman wealth is distinguished at the end of the planning period.…”

Is the Dutch consumer a true ricardian?

“…The latter is especially relevant for The Netherlands which appears to be a difficult 'nut to crack' when it comes down to consumer behavior. Simple representative agent models of consumer behavior do not seem to fit the description of the Dutch consumer (see, e.g., Winder and Palm, 1989). Our hunch is that by paying closer attention to the demographic structure 2 and habits in consumer behavior we may end up shedding light on questions that cannot be answered by means of simple reduced form regressions.…”

The permanent income hypothesis, business cycles, and regime shifts: Evidence from eight countries

“…13 In a European context we refer to the establishment of the exchange rate mechanism of the European Monetary System as a probable cause of changes in the behavior of European interest rates. Winder and Palm (1989) and Palm and Winder (1990) examine models in which the trend rate of growth of consumption is related to changes in the trend rate of growth of income. Multiple dummy variables, based on visual inspection of the income series, improve the time-series characteristics of consumption.…”