Arbeitspapier

The Life-Cycle Hypothesis Revisited: Evidence on Housing Consumption after Retirement

According to the life-cycle theory of consumption and saving, foreseeable retirement events should not reduce consumption. Whereas some consumption expenditures may fall when they are self-produced (given higher leisure after retirement), this argument applies especially to housing consumption which can hardly be substituted by home production. We test this hypothesis using micro data for Germany (GSOEP) and find that income reductions when entering retirement have a negative effect on housing expenditures for tenants. For some econometric specifications, this effect is significantly stronger than the one of income changes at other times. While this result suggests that the strict consumption-smoothing hypothesis is violated for the subgroup of nonhome owners, the effect is quantitatively small, which explains the ambiguity of previous findings.

Sprache
Englisch

Erschienen in
Series: IMK Working Paper ; No. 14/2010

Klassifikation
Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Thema
consumption smoothing
retirement-consumption puzzle
GSOEP
Einkommenshypothese
Rentner
Alte Menschen
Verbraucherausgaben
Wohnkosten
Miete
Deutschland

Ereignis
Geistige Schöpfung
(wer)
Beblo, Miriam
Schreiber, Sven
Ereignis
Veröffentlichung
(wer)
Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK)
(wo)
Düsseldorf
(wann)
2010

Handle
URN
urn:nbn:de:101:1-201101312943
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Beblo, Miriam
  • Schreiber, Sven
  • Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK)

Entstanden

  • 2010

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