This article estimates the importance of temptation for consumption smoothing and asset accumulation in a life‐cycle model. We use two complementary estimation strategies: first, we estimate the model‐implied Euler equation; second, we match liquid and illiquid wealth accumulation using the method of simulated moments. In both cases, we find that the utility cost of temptation is one‐quarter of the utility benefit of consumption. Further, temptation is crucial for correctly estimating the elasticity of intertemporal substitution (EIS): EIS estimates are biased downward when ignoring temptation. Finally, the model only matches the share of illiquid wealth if temptation is in the preference specification.

中文翻译：

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估算生命周期中的诱惑和投入

本文估计了在生命周期模型中进行诱惑对平滑消费和资产积累的重要性。我们使用两种互补的估计策略：首先，估计模型隐含的Euler方程；其次，我们使用模拟矩的方法匹配流动和非流动财富积累。在这两种情况下，我们发现诱惑的效用成本是消费的效用收益的四分之一。此外，诱惑对于正确估计跨时替代（EIS）的弹性至关重要：当忽略诱惑时，EIS估计会向下偏移。最后，如果诱惑在偏好规范中，则该模型仅匹配非流动财富的份额。