Life Cycle Consumption and the Great Recession

Bernini, Cristina ; Cracolici, Maria Francesca ; Cuffaro, Miranda (2017) Life Cycle Consumption and the Great Recession.
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Abstract

Using Italian Household Budget Survey data for the period 1997-2013, this paper estimates the life cycle profiles of consumption and cross-sectional variance in the Great Recession. The study examines age profiles for total and durable expenditure, and four subcomponents of non-durable expenditure. We document significant heterogeneity in the way the recession affects consumption and the variance within-cohorts. The crisis has entailed a fall in expenditure for the youngest cohorts, and a notable reduction of inequalities for the middle and oldest cohorts with some differences between high and low income elastic expenditure. We also found that socio-demographic factors account for a substantial heterogeneity in consumption behaviour during the recession across households and expenditure subcomponents.

Abstract
Document type
Article
Creators
CreatorsAffiliationORCID
Bernini, CristinaUniversity of Bologna
Cracolici, Maria FrancescaUniversity of Palermo
Cuffaro, MirandaUniversity of Palermo
Keywords
Consumption, Inequality, Life cycle, Cohort approach, Recession
Subjects
DOI
Deposit date
15 Nov 2017 09:37
Last modified
15 Nov 2017 09:37
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