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Intergenerational Linkages in Consumption Behavior

Andreas Waldkirch (), Serena Ng () and Donald Cox ()

Journal of Human Resources, 2004, vol. 39, issue 2

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.

Date: 2004
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Working Paper: Intergenerational Linkages in Consumption Behavior (2000) Downloads
Working Paper: Intergenerational Linkages in Consumption Behavior (2000) Downloads
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