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Intergenerational Linkages in Consumption Behavior

Author

Listed:
  • Andreas Waldkirch
  • Serena Ng
  • Donald Cox
Abstract
We investigate familial relationships in consumption patterns using a sample of parents and their children from the Panel Study of Income Dynamics. We find a positive and statistically significant parent-specific effect on children’ s consumption even after controlling for the effect of parental income. This correlation is found in different measures of consumption, and is not sensitive to private transfers. In contrast, the correlation is not statistically significant between pairs of households that are not related. The evidence is quite strong that income is not the only source of a parental effect in consumption behavior of their offspring.

Suggested Citation

  • Andreas Waldkirch & Serena Ng & Donald Cox, 2004. "Intergenerational Linkages in Consumption Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    • Handle: RePEc:uwp:jhriss:v:39:y:2004:i:2:p355-381
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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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