The Effects of the Financial Crisis on Actual and Anticipated Consumption
AbstractWe studied how households adjust their spending in response to the financial crisis. Based on five waves of data from the Consumption and Activities Mail Survey, we quantified the reduction in total consumption and in specific categories of consumption in the older population at large and by stock ownership, both as a proxy for wealth and to test assumptions about whether stock ownership was associated with different responses. In particular, we compared consumption changes between 2007 and 2009 with consumption changes over prior years. We used panel data on anticipated changes in spending at retirement to quantify the effects of the financial crisis on well-being in retirement via a difference-in-differences approach.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp255.
Length: 29 pages
Date of creation: Oct 2011
Date of revision:
Contact details of provider:
Postal: P.O. Box 1248, Ann Arbor, MI 48104
Phone: (734) 615-0422
Fax: (734) 647-4575
Web page: http://www.mrrc.isr.umich.edu/publications/papers/
More information through EDIRC
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Hurd & Susann Rohwedder, 2009.
"Methodological Innovations in Collecting Spending Data: The HRS Consumption and Activities Mail Survey,"
Institute for Fiscal Studies, vol. 30(Special I), pages 435-459, December.
- Michael Hurd & Susann Rohwedder, 2008. "Methodological Innovations in Collecting Spending Data: The HRS Consumption and Activities Mail Survey," Working Papers 646, RAND Corporation Publications Department.
- Martin Browning & Thomas F. Crossley, 2004.
"Shocks, stocks and socks: smoothing consumption over a temporary income loss,"
CAM Working Papers
2004-05, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Martin Browning & Thomas F. Crossley, 2009. "Shocks, Stocks, and Socks: Smoothing Consumption Over a Temporary Income Loss," Journal of the European Economic Association, MIT Press, vol. 7(6), pages 1169-1192, December.
- Melvin Stephens, 2004.
"Job Loss Expectations, Realizations, and Household Consumption Behavior,"
The Review of Economics and Statistics,
MIT Press, vol. 86(1), pages 253-269, February.
- Melvin Stephens, Jr., 2003. "Job Loss Expectations, Realizations, and Household Consumption Behavior," NBER Working Papers 9508, National Bureau of Economic Research, Inc.
- Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March.
- Martin Browning & Thomas Crossley, 2003. "Shocks, Stocks and Socks," Department of Economics Working Papers 2003-07, McMaster University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (MRRC Administrator).
If references are entirely missing, you can add them using this form.