Substitution Effects in Intertemporal Problems

Dragone, Davide and Vanin, Paolo (2020) Substitution Effects in Intertemporal Problems. Bologna: Dipartimento di Scienze economiche, p. 24. DOI 10.6092/unibo/amsacta/6376. In: Quaderni - Working Paper DSE (1147). ISSN 2282-6483.
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Abstract

We consider a broad class of intertemporal economic problems and we characterize the short and long-run response of the demand for a good to a permanent increase in its market price. Depending on the interplay between self-productivity and time discounting, we show that dynamic substitution effects can generate price elasticities of opposite sign in the short and in the long run.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Dragone, DavideUniversity of Bologna0000-0002-2725-4743
Vanin, PaoloUniversity of Bologna0000-0001-8767-8567
Keywords
Intertemporal substitution, price elasticity, tax reforms
Subjects
ISSN
2282-6483
DOI
Deposit date
12 May 2020 09:16
Last modified
12 May 2020 09:16
URI

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