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    Time variation in lifecycle consumption and housing wealth

    Aksoy, Yunus and Basso, Henrique S. and St Aubyn, Carolyn (2019) Time variation in lifecycle consumption and housing wealth. Working Paper. Birkbeck, University of London, London, UK.

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    Abstract

    We document systematic and significant time variation in the profiles of lifecycle consumption expenditures in the US. Lifecycle consumption profiles have consistently become atter through time. Pooling data across different periods to identify consumption profiles masks relevant time variation and may artificially generate the well known hump-shaped consumption age profile. We also identify the effect of perceived housing wealth on lifecycle consumption profiles. Housing in uenced lifecycle consumption particularly from 2006 onwards and for older households. We propose mechanisms that may account for the estimated results employing an overlapping generations model with perceived housing wealth and time varying borrowing constraints.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: BCAM Working Paper Series 1904. ISSN 1745-8587
    Keyword(s) / Subject(s): Age profile of Consumption, Structural Trends, House Prices
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centre: Applied Macroeconomics, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 22 Aug 2019 17:31
    Last Modified: 22 Aug 2019 17:49
    URI: http://eprints.bbk.ac.uk/id/eprint/28709

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