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An Analysis Of The Retirement-Consumption Puzzle For Food-At-Home And Away-From-Home Expenditures In Germany


  • Drescher, Larissa S.
  • Roosen, Jutta


According to Ando and Modigliani (1957), consumers pass different stages of a lifecycle with different impact on demand. The criticism that the life-cycle theory neglects generational effects and concentrates on ageing effects only has led to the application of the cohort analysis which decomposes not only age, but also period and cohort effects. Following these ideas, this paper presents results of a cohort analysis on food-at-home and away-from-home consumption covering 25 years of German consumption data. Special attention is given to the retirement-consumption puzzle which is the unanticipated drop in consumption after retirement. Results of seemingly unrelated regressions indicate that there are significant age, period and cohort effects of food-at-home and away-from-home expenditures which are more distinct for at-home consumption. Among others, pensioners appear to have significantly lower expenditures for food-at-home and food-away-from-home than non-retired households which points towards the existence of a retirement-consumption puzzle for these two consumption groups.

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  • Drescher, Larissa S. & Roosen, Jutta, 2010. "An Analysis Of The Retirement-Consumption Puzzle For Food-At-Home And Away-From-Home Expenditures In Germany," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116441, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:eaa115:116441

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    References listed on IDEAS

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    More about this item


    cohort analysis; retirement-consumption puzzle; food-at-home expenditures; food-away- from-home expenditures; Germany; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; D91; E21; J10;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General


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