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Durable Purchases over the Later Life Cycle


  • Martin Browning

    (University of Oxford and Institute for Fiscal Studies)

  • Thomas Crossley

    () (Koc University, Institute for Fiscal Studies and University of Cambridge)

  • Melanie Lührmann

    (Royal Holloway, University of London and Institute for Fiscal Studies)


We investigate the life cycle patterns of households' spending on medium value durables. We use panel data on expenditures on appliances and consumer electronics the British Household Panel Study between 1997 and 2008. In cross section, expenditures for appliances and consumer electronics decrease strongly as households age. We show that this is entirely attributable to cohort effects and that when such effects are properly modelled, expenditure on consumer electronics rises with age. We also document important demand effects of household composition, labour supply and health status.

Suggested Citation

  • Martin Browning & Thomas Crossley & Melanie Lührmann, 2012. "Durable Purchases over the Later Life Cycle," Koç University-TUSIAD Economic Research Forum Working Papers 1213, Koc University-TUSIAD Economic Research Forum.
  • Handle: RePEc:koc:wpaper:1213

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    References listed on IDEAS

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    Cited by:

    1. Sule Alan & Thomas Crossley & Hamish Low, 2012. "Saving on a Rainy Day, Borrowing for a Rainy Day," Koç University-TUSIAD Economic Research Forum Working Papers 1212, Koc University-TUSIAD Economic Research Forum.
    2. Alessandro Bucciol & Raffaele Miniaci, 2012. "Financial Risk Aversion, Economic Crises and Past Risk Perception," Working Papers 28/2012, University of Verona, Department of Economics.

    More about this item


    life cycle model; consumer behaviour; durables.;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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