IDEAS home Printed from https://ideas.repec.org/p/ags/eaa115/116441.html

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

Author

Listed:
  • Drescher, Larissa S.
  • Roosen, Jutta

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:eaa115:116441
    DOI: 10.22004/ag.econ.116441
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/116441/files/P1-1_Drescher_Roosen.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.116441?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wendt, Minh & Kinsey, Jean D., 2007. "Do Eating Patterns Follow a Cohort or Change Over a Lifetime? Answers Emerging from the Literature," Working Papers 7071, University of Minnesota, The Food Industry Center.
    2. Hayden Stewart & Noel Blisard, 2008. "Are Younger Cohorts Demanding Less Fresh Vegetables?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 43-60.
    3. B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 2001. "What Accounts for the Variation in Retirement Wealth among U.S. Households?," American Economic Review, American Economic Association, vol. 91(4), pages 832-857, September.
    4. Harris, James Michael & Blisard, Noel, 2000. "Decomposing Red Meat, Poultry, And Fish Expenditures Into Age, Time, And Cohort Effects," 2000 Annual meeting, July 30-August 2, Tampa, FL 21805, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Deaton, Angus & Paxson, Christina, 1994. "Intertemporal Choice and Inequality," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 437-467, June.
    6. Lundberg, Shelly & Startza, Richard & Stillman, Steven, 2003. "The retirement-consumption puzzle: a marital bargaining approach," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1199-1218, May.
    7. Schwerdt, Guido, 2005. "Why does consumption fall at retirement? Evidence from Germany," Economics Letters, Elsevier, vol. 89(3), pages 300-305, December.
    8. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1797-1855, December.
    9. Raffaelle Miniaci & Chiara Monfardini & Guglielmo Weber, 2003. "Is there a retirement consumption puzzle in Italy?," IFS Working Papers W03/14, Institute for Fiscal Studies.
    10. Blisard, Noel, 2001. "Income and Food Expenditures Decomposed by Cohort, Age, and Time Effects," Technical Bulletins 33552, United States Department of Agriculture, Economic Research Service.
    11. Mori, Hiroshi & Lowe, Everett G., III & Clason, Dennis L. & Gorman, William D., 2000. "Cohort Analysis Of Food Consumption: A Case Of Rapidly Changing Japanese Consumption," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(2), pages 1-17.
    12. Fisher, Jonathan D. & Johnson, David S. & Marchand, Joseph & Smeeding, Timothy M. & Torrey, Barbara Boyle, 2008. "The retirement consumption conundrum: Evidence from a consumption survey," Economics Letters, Elsevier, vol. 99(3), pages 482-485, June.
    13. A. L. Robb & J. B. Burbidge, 1989. "Consumption, Income, and Retirement," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 522-542, August.
    14. Hayden Stewart & Noel Blisard, 2008. "Are Younger Cohorts Demanding Less Fresh Vegetables?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 43-60.
    15. Banks, James & Blundell, Richard & Tanner, Sarah, 1998. "Is There a Retirement-Savings Puzzle?," American Economic Review, American Economic Association, vol. 88(4), pages 769-788, September.
    16. Holden, Ken & Klein, Philip A. & Lahiri, Kajal, 2001. "Introduction," International Journal of Forecasting, Elsevier, vol. 17(3), pages 329-332.
    17. 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.
    18. Blisard, Noel, 2001. "Income and Food Expenditures Decomposed by Cohort, Age, and Time Effects," Technical Bulletins 184328, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Misbah Aslam & Eatzaz Ahmad, 2018. "Impact of Ageing and Generational Effects on Household Energy Consumption Behavior: Evidence from Pakistan," Energies, MDPI, vol. 11(8), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Drescher, Larissa S. & Roosen, Jutta, 2013. "A Cohort Analysis of Food-at-Home and Food-away-from-Home Expenditures in Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(01), pages 1-13, February.
    2. Drescher, Larissa S. & Roosen, Jutta, 2013. "A Cohort Analysis of Food-at-Home and Food-away-from-Home Expenditures in Germany," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(1).
    3. Velarde, Melanie & Herrmann, Roland, 2014. "How retirement changes consumption and household production of food: Lessons from German time-use data," The Journal of the Economics of Ageing, Elsevier, vol. 3(C), pages 1-10.
    4. Erik Hurst, 2008. "The Retirement of a Consumption Puzzle," NBER Working Papers 13789, National Bureau of Economic Research, Inc.
    5. Anders, Sven M., 2010. "Ageing And Consumption – The Impact Of Demographic Change On Food Expenditure Patterns," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116442, European Association of Agricultural Economists.
    6. Mark Aguiar & Erik Hurst, 2004. "Consumption vs. Expenditure," NBER Working Papers 10307, National Bureau of Economic Research, Inc.
    7. Stephens, Melvin & Unayama, Takashi, 2012. "The impact of retirement on household consumption in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 62-83.
    8. repec:bla:germec:v:11:y:2010:i::p:225-245 is not listed on IDEAS
    9. Almudena Sevilla-Sanz & Maria Jose Luengo-Prado, 2010. "Consumption, Retirement and Life-cycle Prices: Evidence From Spain," Economics Series Working Papers 498, University of Oxford, Department of Economics.
    10. Erich Battistin & Agar Brugiavini & Enrico Rettore & Guglielmo Weber, 2009. "The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 99(5), pages 2209-2226, December.
    11. Stefan Mann & Daria Loginova, 2023. "Distinguishing inter- and pangenerational food trends," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-18, December.
    12. Daniel Burkhard, 2015. "Consumption smoothing at retirement: average and quantile treatment effects in the regression discontinuity design," Diskussionsschriften dp1512, Universitaet Bern, Departement Volkswirtschaft.
    13. Ludmila Nivorozhkina & Anton Nivorozhkin & Kamilla Abazieva, 2010. "Drop in consumption associated with retirement. The regression discontinuity design approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 19(3), pages 112-126.
    14. Yingying Dong & Dennis Yang, 2016. "Mandatory Retirement and the Consumption Puzzle: Prices Decline or Quantities Decline?," Upjohn Working Papers 16-251, W.E. Upjohn Institute for Employment Research.
    15. Lührmann Melanie, 2010. "Consumer Expenditures and Home Production at Retirement – New Evidence from Germany," German Economic Review, De Gruyter, vol. 11(2), pages 225-245, May.
    16. Yingying Dong, 2012. "Regression Discontinuity Applications with Rounding Errors in the Running Variable," Working Papers 111206, University of California-Irvine, Department of Economics.
    17. Marini, Andrea, 2024. "Updating the retirement-consumption puzzle in Italy: who are the most affected?," Working Paper Series 2936, European Central Bank.
    18. Michael D. Hurd & Susann Rohwedder, 2006. "Some Answers to The Retirement-Consumption Puzzle," Working Papers WR-342, RAND Corporation.
    19. Thomas Horvath & Thomas Url, 2013. "Bridging-Renten als Überbrückung für Einkommensausfälle vor dem Pensionsantritt," WIFO Studies, WIFO, number 46684, August.
    20. Garry F. Barrett & Matthew Brzozowski, 2010. "Involuntary Retirement and the Resolution of the Retirement-Consumption Puzzle: Evidence from Australia," Social and Economic Dimensions of an Aging Population Research Papers 275, McMaster University.
    21. Melanie Lührmann, 2005. "Population Aging and the Demand for Goods & Services," MEA discussion paper series 05095, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaa115:116441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.