The aggregate Euler equation and transaction services of government bonds

dc.contributor.author	Arnold, Matthias
dc.contributor.author	Linnemann, Ludger
dc.date.accessioned	2012-11-16T09:44:13Z
dc.date.available	2012-11-16T09:44:13Z
dc.date.issued	2012-11-16
dc.description.abstract	We estimate an aggregate consumption Euler equation on a panel of OECD countries allowing for the stocks of government bonds to influence the intertemporal path of private consumption. The results can be interpreted as mildly supportive of recently proposed theories which postulate that government bonds have a liquidity value due to their role in facilitating transactions. We also allow for non-separability between consumption and leisure in utility in a way that distinguishes between the extensive and the intensive margin of employment. The relation between expected changes in consumption and employment at the extensive margin turns out as the most robust feature of the data, while the intensive margin appears to be of limited importance.	en
dc.identifier.uri	http://hdl.handle.net/2003/29766
dc.identifier.uri	http://dx.doi.org/10.17877/DE290R-4956
dc.language.iso	en	de
dc.relation.ispartofseries	Discussion Paper / SFB 823;54/2012	en
dc.subject	crosssectional dependence	en
dc.subject	dynamic panel	en
dc.subject	Euler equation	en
dc.subject	liquidity	en
dc.subject	non-separable utility	en
dc.subject.ddc	310
dc.subject.ddc	330
dc.subject.ddc	620
dc.title	The aggregate Euler equation and transaction services of government bonds	en
dc.type	Text	de
dc.type.publicationtype	workingPaper	de
dcterms.accessRights	open access

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