Households Consumption Behavior in Russia: Estimates on Micro Data

19 Pages Posted: 4 Nov 2013 Last revised: 11 Nov 2013

See all articles by Alexander Larin

Alexander Larin

National Research University Higher School of Economics

Anna Novak

National Research University Higher School of Economics

Irina Khvostova

National Research University Higher School of Economics

Date Written: August 1, 2013

Abstract

This paper investigates the household consumption behavior in Russia. The model assumes that household consumption can be described by both the Euler equation and the rule-of-thumb. Using panel data on households (Russian Longitudinal Monitoring Survey – Higher School of Economics [RLMS-HSE]) from 2000 to 2011, we obtain the estimates of the elasticity of intertemporal substitution and show that an essential part of households consume a constant share of their current income and do not solve optimization problem.

Keywords: household consumption, Euler equation, rule-of-thumb, elasticity of intertemporal substitution, RLMS-HSE

JEL Classification: E21, C23

Suggested Citation

Larin, Alexander and Novak, Anna and Khvostova, Irina, Households Consumption Behavior in Russia: Estimates on Micro Data (August 1, 2013). Available at SSRN: https://ssrn.com/abstract=2348801 or http://dx.doi.org/10.2139/ssrn.2348801

Alexander Larin

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

HOME PAGE: http://www.hse.ru/org/persons/423042

Anna Novak (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Irina Khvostova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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