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A cohort analysis of household income, consumption and saving

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  • John Gibson
  • Grant Scobie

Abstract

This paper presents a cohort analysis of household income, consumption and saving in New Zealand. It is based on an analysis of unit record data from March years 1984 to 1998 taken from the Household Economic Survey (HES). These data are a series of cross-sectional surveys rather than a true panel, so we construct synthetic cohorts and use a range of regression models to separate out the effect of age, birth-year cohort and survey year on income, consumption and saving rates. There appears to be a “V” shaped cohort pattern in household income and saving, such that the age profile of saving shifted down for the cohorts born between 1920 and 1939 relative to the younger and older cohorts studied.

Suggested Citation

  • John Gibson & Grant Scobie, 2001. "A cohort analysis of household income, consumption and saving," New Zealand Economic Papers, Taylor & Francis Journals, vol. 35(2), pages 196-216.
    • Handle: RePEc:taf:nzecpp:v:35:y:2001:i:2:p:196-216
    DOI: 10.1080/00779950109544339
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    References listed on IDEAS

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    1. Martin Browning & Thomas F. Crossley, 2001. "The Life-Cycle Model of Consumption and Saving," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 3-22, Summer.
    2. Paxson, Christina, 1996. "Saving and growth: Evidence from micro data," European Economic Review, Elsevier, vol. 40(2), pages 255-288, February.
    3. Angus Deaton & Christina Paxson, 2000. "Growth and Saving Among Individuals and Households," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 212-225, May.
    4. Orazio P. Attanasio, 1998. "Cohort Analysis of Saving Behavior by U.S. Households," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 575-609.
    5. Orazio P. Attanasio & Hilary Williamson Hoynes, 2000. "Differential Mortality and Wealth Accumulation," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 1-29.
    6. Paul Johnson & Gary Stears, 1998. "Why are Older Pensioners Poorer?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 271-290, August.
    7. Orazio Attanasio & James Banks, 1998. "Trends in household saving: a tale of two countries," IFS Working Papers W98/15, Institute for Fiscal Studies.
    8. Johnson, Paul & Stears, Gary, 1998. "Why Are Older Pensioners Poorer?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 271-290, August.
    9. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    10. Shorrocks, A F, 1975. "The Age-Wealth Relationship: A Cross-Section and Cohort Analysis," The Review of Economics and Statistics, MIT Press, vol. 57(2), pages 155-163, May.
    11. John K Gibson & Grant M Scobie, 2001. "Household Saving Behaviour in New Zealand: A Cohort Analysis," Treasury Working Paper Series 01/18, New Zealand Treasury.
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    Citations

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    Cited by:

    1. Le, Trinh, 2007. "Does New Zealand have a household saving crisis?," NZIER Working Paper 2007/1, New Zealand Institute of Economic Research.
    2. Christopher Ball & John Creedy, 2014. "Population ageing and the growth of income and consumption tax revenue," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(2), pages 169-182, August.
    3. Grant Scobie & John Gibson & Trinh Le, 2004. "Saving for Retirement: New Evidence for New Zealand," Treasury Working Paper Series 04/12, New Zealand Treasury.
    4. Grant Scobie & Trinh Le & John Gibson, 2007. "Housing in the Household Portfolio and Implications for Retirement Saving: Some Initial Finding from SOFIE," Treasury Working Paper Series 07/04, New Zealand Treasury.
    5. Rod Tyers & Jane Golley & Ian Bain, 2007. "Projected Economic Growth in China and India: The Role of Demographic Change," ANU Working Papers in Economics and Econometrics 2006-477, Australian National University, College of Business and Economics, School of Economics.
    6. Trinh Le & John Gibson & Steven Stillman, 2010. "Household Wealth and Saving in New Zealand: Evidence from the Longitudinal Survey of Family, Income and Employment," Working Papers 10_06, Motu Economic and Public Policy Research.
    7. John Gibson & Trinh Le & Grant Scobie, 2006. "Household Bargaining Over Wealth And The Adequacy Of Women'S Retirement Incomes In New Zealand," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 221-246.
    8. Chan, Ming Ming & Shi, Qun & Tyers, Rodney, 2005. "Global Demographic Change and Economic Performance: Implications for Agricultural Markets," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137808, Australian Agricultural and Resource Economics Society.
    9. John Gibson & Trinh Le & Grant Scobie, 2004. "Women’s Retirement Incomes in New Zealand: A Household Bargaining Approach," Treasury Working Paper Series 04/22, New Zealand Treasury.
    10. Babatunde, Musibau Adetunji, 2006. "Trade Policy Reform, Regional Integration and Export Performance in the ECOWAS Sub-Region," Conference papers 331466, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Trinh Le & Grant Scobie & John Gibson, 2009. "Are Kiwis saving enough for retirement? Evidence from SOFIE," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(1), pages 3-19.
    12. Rod Tyers & Qun Shi, 2006. "Global Demographic Change, Labour Force Growth and Economic Performance," ANU Working Papers in Economics and Econometrics 2006-462, Australian National University, College of Business and Economics, School of Economics.
    13. Mark Vink, 2016. "Intergenerational developments in household saving behaviour," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(1), pages 3-28, April.

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