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Eating, Drinking, Smoking, and Testing the Lifecycle Hypothesis

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  • Martin Browning

Abstract

This paper presents some evidence on expenditure patterns over the lifecycle that has a direct bearing on the question of whether households are significantly credit constrained. Our particular test looks at the consumption of food, alcoholic beverages, and tobacco to see whether the consumption of the latter two "goods" falls as couples have children. The latter usually involves a decrease in household current income and an increase in needs. If households are not credit constrained, they should maintain their consumption of alcoholic beverages and tobacco. We find no significant decrease in the consumption of these goods.

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  • Martin Browning, 1987. "Eating, Drinking, Smoking, and Testing the Lifecycle Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 329-345.
  • Handle: RePEc:oup:qjecon:v:102:y:1987:i:2:p:329-345.
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    File URL: http://hdl.handle.net/10.2307/1885066
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    Cited by:

    1. Robert E. Hall, 1987. "Consumption," NBER Working Papers 2265, National Bureau of Economic Research, Inc.
    2. Mauricio V.L. Bittencourt & Ratapol P. Teratanavat & Wen S. Chern, 2007. "Food consumption and demographics in Japan: Implications for an aging population," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 529-551.
    3. Angela C. Lyons & Tansel Yilmazer, 2005. "Health and Financial Strain: Evidence from the Survey of Consumer Finances," Southern Economic Journal, John Wiley & Sons, vol. 71(4), pages 873-890, April.
    4. David Aristei & Federico Perali & Luca Pieroni, 2008. "Cohort, age and time effects in alcohol consumption by Italian households: a double-hurdle approach," Empirical Economics, Springer, vol. 35(1), pages 29-61, August.
    5. Sandra L. Decker & Amy Ellen Schwartz, 2000. "Cigarettes and Alcohol: Substitutes or Complements?," NBER Working Papers 7535, National Bureau of Economic Research, Inc.
    6. David Aristei & Luca Pieroni, 2010. "Habits, Complementarities and Heterogeneity in Alcohol and Tobacco Demand: A Multivariate Dynamic Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(4), pages 428-457, August.
    7. Federico Perali & David Aristei & Luca Pieroni, 2005. "Cohort analysis of alcohol consumption: a double hurdle approach," CHILD Working Papers wp09_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    8. Orazio P. Attanasio, 1998. "Consumption Demand," NBER Working Papers 6466, National Bureau of Economic Research, Inc.

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