The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Elasticity of Intertemporal Substitution

  • Christopher Bliss
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2560

Abstract

The elasticity of intertemporal substitution (EIS) measures the willingness on the part of the consumer to substitute future consumption for present consumption. It plays a key role in the theory of consumption and saving, in particular in the life-cycle version of that theory.

Keywords

Consumption smoothing Consumption theory Elasticity of intertemporal substitution Elasticity of substitution Multiple equilibria Overlapping generations models Risk aversion Savings 

JEL Classifications

D0 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Christopher Bliss
    • 1
  1. 1.