Time variation in lifecycle consumption and income
Aksoy, Yunus and Basso, Henrique S. and St Aubyn, Carolyn (2021) Time variation in lifecycle consumption and income. Working Paper. Banco de Espana.
|
Text
43665.pdf - Published Version of Record Download (1MB) | Preview |
Abstract
We document systematic and significant time variation in US lifecycle non-durable consumption profiles. Consumption profiles have consistently become flatter: differences in consumption across generations have decreased. Pooling data across different periods to identify lifecycle profiles masks relevant time variations and may artificially generate hump-shaped consumption age profiles. The main driver behind lifecycle consumption variations are lifecycle income changes, which display similar flattening. Employing a lifecycle model we show changes in income are sufficient to match the movements in consumption. The contributions of credit, housing and interest rates changes are quantitatively small.
Metadata
| Item Type: | Monograph (Working Paper) |
|---|---|
| Additional Information: | Banco de Espana Documentos de Trabajo no.2111, ISSN: 1579-8666 |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Applied Macroeconomics, Birkbeck Centre for |
| Depositing User: | Yunus Aksoy |
| Date Deposited: | 29 Mar 2021 12:48 |
| Last Modified: | 02 Aug 2023 18:09 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/43665 |
Statistics
Additional statistics are available via IRStats2.
Archive Staff Only (login required)
 |
Edit/View Item |