The elasticity of intertemporal substitution: New evidence from 401(k) participation

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Abstract

Using Health and Retirement Study data and a structural econometric model, we exploit variation in employer matching rates in 401(k) plans to generate new estimates of the EIS: 0.74 in our richest specification, with a 95% confidence interval of 0.37-1.21. © 2009 Elsevier B.V. All rights reserved.

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Engelhardt, G. V., & Kumar, A. (2009). The elasticity of intertemporal substitution: New evidence from 401(k) participation. Economics Letters, 103(1), 15–17. https://doi.org/10.1016/j.econlet.2009.01.010

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