Intergenerational Elasticities of Housing Consumption and Income

Lancelot Henry de Frahan (lancelot@uchicago.edu) and Jung Sakong
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Lancelot Henry de Frahan: https://economics.uchicago.edu/directory/Lancelot-Henry-de-Frahan
Jung Sakong: https://www.chicagofed.org/people/s/sakong-jung

No WP 2024-21, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: We estimate intergenerational elasticities (IGE) of housing consumption and income in the U.S. Using surnames to link 1940 and 2015, we estimate a one-generation housing-consumption IGE of 0.73, higher than that of income at 0.52. Housing consumption IGE is higher for White compared to Black Americans and higher in the Northeast, patterns that contrast with income IGE. Inverting Engel curves suggests a total-consumption IGE of 0.72. Complementary to income IGE, consumption mobility is a closer measure of welfare mobility, and comparisons with income IGE inform intergenerational consumption insurance.

Keywords: Intergenerational elasticity; Consumption mobility (search for similar items in EconPapers)
JEL-codes: J62 N32 (search for similar items in EconPapers)
Pages: 35
Date: 2024-08-14
New Economics Papers: this item is included in nep-ure
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DOI: 10.21033/wp-2024-21

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