Work

Durable Purchases over the Later Life Cycle

Year: 2014

Type: article

Abstract: We investigate life‐cycle patterns of demand for services from household durables using UK panel data. We take careful account of prices, demographics, labour supply and health. Demand for consumer electronics rises with age, while the demand for household appliances is flat. These findings contrast with the well documented decline in non‐durable consumption at older ages, and suggest that studies that estimate the overall discount rate from nondurable consumption may underestimate consumer patience and the savings required to fund retirement. We also find important non‐separabilities between the demand for durables, labour supply and health status.

Source: Oxford Bulletin of Economics and Statistics

DOI: 10.1111/obes.12085

Authors: Martin Browning, Thomas F. Crossley, Melanie Lührmann

Institutions: Institute for Fiscal Studies, University of Oxford, University of Essex, Royal Holloway University of London

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,840

Funder: Economic and Social Research Council