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Household Consumption at Retirement: a Regression Discontinuity Study on French Data

Author

Listed:
  • Nicolas Moreau

    (UR - Université de la Réunion)

  • Elena Stancanelli

    () (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

Abstract

Previous literature has investigated the drop in household consumption after the retirement of the household head, referred to as the so-called 'retirement consumption puzzle'. This article expands on these studies by taking the retirement of the wife into consideration, thus distinguishing between 'dualearner' households and those in which the wife is a 'housewife'. A regression discontinuity approach is used to estimate the effect of each partner's retirement on household consumption. The analysis data are derived from the 2001 French Consumer Budget Survey that collected two-week expenditure diaries. The findings indicate a significant and sizable decrease in clothing expenditure upon the retirement of the male partner.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Nicolas Moreau & Elena Stancanelli, 2015. "Household Consumption at Retirement: a Regression Discontinuity Study on French Data," PSE - Labex "OSE-Ouvrir la Science Economique" hal-01044871, HAL.
  • Handle: RePEc:hal:pseose:hal-01044871
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01044871
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    References listed on IDEAS

    as
    1. Michael D. Hurd & Susann Rohwedder, 2008. "The Retirement Consumption Puzzle: Actual Spending Change in Panel Data," NBER Working Papers 13929, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Peter Eibich, 2014. "Understanding the Effect of Retirement on Health Using Regression Discontinuity Design," SOEPpapers on Multidisciplinary Panel Data Research 669, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Kyureghian, Gayaneh & Soler, Louis-Georges, 2016. "Life Cycle Consumption of Food: Evidence from French Data," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236785, Agricultural and Applied Economics Association.
    3. repec:eee:jhecon:v:54:y:2017:i:c:p:66-78 is not listed on IDEAS
    4. Li, Hongbin & Shi, Xinzheng & Wu, Binzhen, 2016. "The retirement consumption puzzle revisited: Evidence from the mandatory retirement policy in China," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 623-637.
    5. Heller Sahlgren, Gabriel, 2016. "Retirement Blues," Working Paper Series 1114, Research Institute of Industrial Economics, revised 17 May 2017.
    6. Eibich, Peter, 2015. "Understanding the effect of retirement on health: Mechanisms and heterogeneity," Journal of Health Economics, Elsevier, vol. 43(C), pages 1-12.

    More about this item

    Keywords

    Retirement; Household Consumption;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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