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Household saving and full consumption over the life cycle

Apps, Patricia; Rees, Ray

Description

This paper extends the standard model of life cycle consumption, saving and labor supply in a number of directions. First, it argues that consumption should be defined as expenditure on household production as well as on market goods, that is, we are interested in life cycle profiles of full consumption. If this is done, several well-known puzzles concerning life cycle consumption behaviour are resolved. Secondly, we stress the importance of the heterogeneity of household behaviour in...[Show more]

dc.contributor.authorApps, Patricia
dc.contributor.authorRees, Ray
dc.date.accessioned2003-03-26
dc.date.accessioned2004-05-19T06:22:05Z
dc.date.accessioned2011-01-05T08:34:27Z
dc.date.available2004-05-19T06:22:05Z
dc.date.available2011-01-05T08:34:27Z
dc.date.created2001
dc.identifier.urihttp://hdl.handle.net/1885/40206
dc.identifier.urihttp://digitalcollections.anu.edu.au/handle/1885/40206
dc.description.abstractThis paper extends the standard model of life cycle consumption, saving and labor supply in a number of directions. First, it argues that consumption should be defined as expenditure on household production as well as on market goods, that is, we are interested in life cycle profiles of full consumption. If this is done, several well-known puzzles concerning life cycle consumption behaviour are resolved. Secondly, we stress the importance of the heterogeneity of household behaviour in respect of female labour supply and saving, and provide evidence that these are very closely related across households. Finally, we formulate theoretical and empirical models incorporating these ideas and use them to show that policy changes, such as a reduction in the progressivity of income taxation, can have effects that contrast sharply with those suggested in the existing literature.
dc.format.extent217295 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoen_AU
dc.subjectsaving
dc.subjecthousehold production
dc.subjectfull consumption
dc.subjectlife cycle
dc.titleHousehold saving and full consumption over the life cycle
dc.typeWorking/Technical Paper
local.description.refereedno
local.identifier.citationmonthmar
local.identifier.citationyear2001
local.identifier.eprintid1041
local.rights.ispublishedyes
dc.date.issued2001
local.contributor.affiliationCEPR, RSSS
local.contributor.affiliationANU
local.citationDiscussion Paper no.428
CollectionsANU Research Publications

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