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

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  • Giovanni Mastrobuoni

    (Princeton University)

  • 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 Princeton University, Department of Economics, Center for Economic Policy Studies. in its series Working Papers with number 65.

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Date of creation: Jan 2007
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Handle: RePEc:pri:cepsud:137mastrobuoni

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Cited by:
  1. Graham, Liam & Snower, Dennis J., 2013. "Hyperbolic Discounting And Positive Optimal Inflation," Macroeconomic Dynamics, Cambridge University Press, Cambridge University Press, vol. 17(03), pages 591-620, April.
  2. Heutel, Garth, 2010. "Optimal Policy Instruments for Externality-Producing Durable Goods under Time Inconsistency," Working Papers 10-5, University of North Carolina at Greensboro, Department of Economics.
  3. 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.
  4. Cobb-Clark, Deborah A. & Kassenböhmer, Sonja C. & Sinning, Mathias, 2013. "Locus of Control and Savings," IZA Discussion Papers 7837, Institute for the Study of Labor (IZA).
  5. Melvin Stephens, Jr. & Takashi Unayama, 2010. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits," NBER Working Papers 16342, National Bureau of Economic Research, Inc.
  6. Leandro Carvalho, 2010. "Poverty and Time Preference," Working Papers, RAND Corporation Publications Department 759, RAND Corporation Publications Department.
  7. 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.
  8. Laibson, David, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(2), pages 443-77, May.
  9. 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.
  10. 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.
  11. 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.
  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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