Are the Consumption Patterns of Elderly Households Consistent with a Life-Cycle Model?
Chiu Fui Joyce Mok, Hui Wang, and Sherman D. Hanna (1994) ,"Are Consumption Patterns of Elderly Households Consistent With a Life-Cycle Model?", Asia Pacific Advances in Consumer Research Volume 1, 1994, Pages 237-245
18 Pages Posted: 28 Jul 2016 Last revised: 26 Sep 2016
Date Written: July 21, 1994
A life-cycle savings model was tested to analyze consumption patterns of elderly U.S. households, using the 1990 and 1991 BLS Interview Survey of Consumer Expenditures. The model implies substantial, planned decreases in consumption after retirement, regardless of income patterns. The empirical analysis suggests that as the world population ages, total consumption will decrease, as will most categories of consumption.
Keywords: life cycle model, intertemporal consumption smoothing, elderly
JEL Classification: D14; D81; D91; G11
Suggested Citation: Suggested Citation