Does the Retirement Consumption Puzzle Differ Across the Distribution?
Jonathan D. Fisher
New York Census Research Data Center; U.S. Census Bureau - Center for Economic Studies
Joseph T. Marchand
University of Alberta - Department of Economics
March 1, 2011
US Census Bureau Center for Economic Studies Paper No. CES-WP-11-09
Previous research has repeatedly found a puzzling one-time drop in consumption at retirement at the mean or median. This study expands upon the previous work by examining these same retirement changes across the entire consumption distribution through the application of quantile regression techniques on data from the 1990-2007 Consumer Expenditure Survey. The evidence indicates gradually larger decreases in consumption across the distribution using several measures of consumption, with insignificant changes shown at lower deciles and the greatest drops occurring at the higher deciles.
Number of Pages in PDF File: 37
Keywords: retirement, life-cycle model, household consumption
JEL Classification: J26, D91, D12working papers series
Date posted: March 20, 2011
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