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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.

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File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1213.pdf
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Paper provided by Koc University-TUSIAD Economic Research Forum in its series Koç University-TUSIAD Economic Research Forum Working Papers with number 1213.

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Length: 36 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:koc:wpaper:1213
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