Intergenerational Linkages in Consumption Behavior

Posted: 19 Nov 2003

See all articles by Andreas Waldkirch

Andreas Waldkirch

Colby College - Department of Economics

Serena Ng

Columbia Business School - Economics Department

Donald Cox

Boston College - Department of Economics

Abstract

We investigate familial relationships in consumption patterns using a sample of parents and their children from the Panel Study of Income Dynamics. We find a positive and statistically significant parent-specific effect on children's consumption even after controlling for the effect of parental income. This correlation is found in different measures of consumption, and is not sensitive to private transfers. In contrast, the correlation is not statistically significant between pairs of households that are not related. The evidence is quite strong that income is not the only source of a parental effect in consumption behavior of their offspring.

Keywords: family, income, tastes, habits, learning

JEL Classification: D10, D12, E21, J26

Suggested Citation

Waldkirch, Andreas and Ng, Serena and Cox, Donald, Intergenerational Linkages in Consumption Behavior. Journal of Human Resources, Forthcoming. Available at SSRN: https://ssrn.com/abstract=470183

Andreas Waldkirch (Contact Author)

Colby College - Department of Economics ( email )

Waterville, ME 04901
United States
207-859-5244 (Phone)
207-859-5229 (Fax)

Serena Ng

Columbia Business School - Economics Department ( email )

420 West 118th Street
New York, NY 10027
United States

Donald Cox

Boston College - Department of Economics ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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