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Heterogeneity in Intra-Monthly Consumption. Patterns, Self-Control, and Savings at Retirement

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  • Giovanni Mastrobuoni

    ()
    (Collegio Carlo Alberto and CeRP)

  • Matthew Weinberg

    ()
    (University of Georgia)

Abstract

Using data from the Continuing Survey of Food Intake by Individuals, this paper describes the shape of consumption profiles over the month for Social Security benefit recipients. Individuals with income mostly made up of Social Security benefits and who have some savings smooth consumption over the pay period, while individuals with little savings consume 25 percent fewer calories the week before checks are received relative to the week after checks are received. The findings for individuals with little savings are inconsistent with the Permanent Income/Lifecycle Hypothesis, but are consistent with hyperbolic discounting.

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Bibliographic Info

Paper provided by Center for Research on Pensions and Welfare Policies, Turin (Italy) in its series CeRP Working Papers with number 57.

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Length: 38 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:crp:wpaper:57

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Related research

Keywords: Hyperbolic consumption; caloric consumption; paychecks; Continuing Survey of Food Intake by Individuals;

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References

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  1. Michelle J. White, 2007. "Bankruptcy Reform and Credit Cards," NBER Working Papers 13265, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. William N. Evans & Timothy J. Moore, 2009. "The Short-Term Mortality Consequences of Income Receipt," NBER Working Papers 15311, National Bureau of Economic Research, Inc.
  2. Deborah A. Cobb-Clark & Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Locus of Control and Savings," Discussion Papers Series, School of Economics, University of Queensland, Australia 498, School of Economics, University of Queensland, Australia.
  3. Todd, Jessica E., 2013. "Revisiting the SNAP Cycle of Food Intake: Investigation Heterogeneity and Diet Quality," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150295, Agricultural and Applied Economics Association.
  4. Heutel, Garth, 2010. "Optimal Policy Instruments for Externality-Producing Durable Goods under Time Inconsistency," Working Papers, University of North Carolina at Greensboro, Department of Economics 10-5, University of North Carolina at Greensboro, Department of Economics.
  5. Laibson, David, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(2), pages 443-77, May.
  6. Bar-Ilan, Avner & Marion, Nancy, 2013. "Demand for cash with intra-period endogenous consumption," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 37(12), pages 2668-2678.
  7. Leandro Carvalho, 2010. "Poverty and Time Preference," Working Papers, RAND Corporation Publications Department 759, RAND Corporation Publications Department.
  8. Melvin Stephens & Takashi Unayama, 2011. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 3(4), pages 86-118, October.
  9. Katsunori Yamada & Masayuki Sato & Yasuhiro Nakamoto, 2009. "Measurement of Social Preference from Utility-Based Choice Experiments," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0759, Institute of Social and Economic Research, Osaka University.
  10. Orazio P. Attanasio & Guglielmo Weber, 2010. "Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy," NBER Working Papers 15756, National Bureau of Economic Research, Inc.
  11. Liam Graham & Dennis Snower, 2011. "Hyperbolic Discounting and Positive Optimal Inflation," CESifo Working Paper Series, CESifo Group Munich 3464, CESifo Group Munich.
  12. Fernando Fernandez & Victor Saldarriaga, 2014. "Do benefit recipients change their labor supply after receiving the cash transfer? Evidence from the Peruvian Juntos program," IZA Journal of Labor & Development, Springer, Springer, vol. 3(1), pages 1-30, December.

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