The AEA is providing open access to all journal content on the AEA website through August 2020 to overcome any difficulties some may have accessing library subscriptions during these challenging times.
The AEA is providing open access to all journal content on the AEA website through August 2020 to overcome any difficulties some may have accessing library subscriptions during these challenging times.
We consider a broad class of intertemporal economic problems and
we characterize the short and long-run response of the demand for
a good to a permanent increase in its market price. Depending on
the interplay between self-productivity and time discounting, we
show that dynamic substitution effects can generate price elasticities of opposite sign in the short and in the long run.
