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Durable Purchases over the Later Life Cycle

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  • Martin Browning
  • Thomas F. Crossley
  • Melanie Lührmann

Abstract

We investigate life cycle patterns of demand for services from household durables using UK panel data. We take careful account of prices, demographics, labour supply and health. Demand for consumer electronics rises with age, while the demand for household appliances is fl?at. These ?findings contrast with the well documented decline in nondurable consumption at older ages, and suggest that studies that estimate the overall discount rate from nondurable consumption may underestimate consumer patience and the savings required to fund retirement. We also ?find important nonseparabilities between the demand for durables, labour supply and health status.
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Suggested Citation

  • Martin Browning & Thomas F. Crossley & Melanie Lührmann, 2016. "Durable Purchases over the Later Life Cycle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(2), pages 145-169, April.
  • Handle: RePEc:bla:obuest:v:78:y:2016:i:2:p:145-169
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    File URL: http://hdl.handle.net/10.1111/obes.12085
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    Cited by:

    1. Sule Alan & Thomas Crossley & Hamish Low, 2012. "Saving on a Rainy Day, Borrowing for a Rainy Day," Koç University-TUSIAD Economic Research Forum Working Papers 1212, Koc University-TUSIAD Economic Research Forum.
    2. Alessandro Bucciol & Raffaele Miniaci, 2012. "Financial Risk Aversion, Economic Crises and Past Risk Perception," Working Papers 28/2012, University of Verona, Department of Economics.

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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