The Retirement-Consumption Puzzle: A Marital Bargaining Approach
By S. Lundberg, R. Startz, S. Stillman. 2003
192 citations recorded by the source corpus.
Evidence from several countries reveals a substantial drop in household consumption around the age of retirement that is difficult to explain with life-cycle models. Using food consumption data from more than 550 households from the Panel Study of Income Dynamics for the years 1979-1986 and 1989-1992, the authors find that married couple households decrease their expenditures on food consumed both at home and away from home by about 8 percent following the retirement of the male household head. This result is robust for several alternative definitions of retirement. No significant decrease in consumption is found for single households, either in a sample of males or a pooled sample of single males and females. These results are consistent with a model of marital bargaining in which wives prefer to save more than their husbands to support an expected longer retirement period, and relative control over household decisions is affected by control over market income.
Subfields: Accounting, Gender Studies, Management Science and Operations Research
View Paper: https://www.semanticscholar.org/paper/721154a7392c1f4a4ef34d0eb5193b13ccd57fd3
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In Accounting
- Erik G. Hurst
- Mark Aguiar
- Steven J. Haider
- Costanza Torricelli
- Nava Ashraf
- Melvin Stephens
- Simone G. Schaner
- Luigi Pistaferri
In Gender Studies
- Mark Aguiar
- Erik G. Hurst
- Costanza Torricelli
- Nava Ashraf
- Marianna Brunetti
- Graziella Bertocchi
- Melvin Stephens
- J. Rappaport
In Management Science and Operations Research
Citations in the corpus
- Retirement and Consumption in a Life Cycle Model (2008, unknown): “See appendix B for details on pensions and appendix C for details on asset returns.”
- Is There a Retirement-Consumption Puzzle? Evidence Using Subjective Retirement Expectations (2007, background): “in Table 3 of Lundberg et al. (2003). Our OLS results in this Panel suggest that the drop in consumption is larger among single households. When we instrument for retirement using most recent expectations (Panel B), the point estimate for single households is still larger than for married households”
- Determinants and Consequences of Bargaining Power in Households (2006, unknown): “1”
- The Retirement of a Consumption Puzzle (2008, unknown): “5 Lundberg et al. (2003) documents declines in food expenditures within the PSID for married households.”
- Who holds the purse strings within the household? The determinants of intra-family decision making (2014, background): “Lundberg and Ward-Batts (2000) show that a larger gap in the educational level, with the husband having more years of education than the wife, is associated with lower household wealth.”
- Spousal Control and Intra-household Decision Making: An Experimental Study in the Philippines (2009, background): “c 259 0.340 0.475 [0, 1 ] Wife Makes More Money but Husband Does Not Know”
- Consumption vs. Expenditure (2004, methodology): “16 Lundberg et al. (2003), using data from the PSID, find that the decline in food expenditure at the time of retirement only occurs for married households. For single households in the PSID, expenditure remains constant through retirement. Using the Retirement History Survey, Haider and Stephens (2”