Is Food Consumption a Good Proxy for Nondurable Consumption?

Yosef Bonaparte and Frank J. Fabozzi
Economics Letters, Volume 111, Issue 2, pp. 110–112

This paper examines whether there is a discrepancy in estimating the elasticity of intertemporal substitution using food consumption instead of nondurable consumption data. We show that a discrepancy exists and that the discrepancy increases as nondurable consumption increases.