12 noon - 1:15pm
Thursday 21 November 2019
Macro Seminar: Time Variation in Lifecycle Consumption and Housing Wealth
Prof. Yunus Aksoy (Birkbeck, University of London) is visiting the School. His research interests are on theoretical and empirical modelling of business cycles and medium cycles in macroeconomics and he is particularly interested in studying aging populations and their macroeconomic impact.
University of Surrey
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Title: Time Variation in Lifecycle Consumption and Housing Wealth
We document systematic and significant time variation in the profiles of lifecycle consumption expenditures in the US. Lifecycle consumption profiles have consistently become flatter through time. Pooling data across different periods to identify consumption profiles masks relevant time variation and may artificially generate the well-known hump-shaped consumption age profile. We also identify the effect of perceived housing wealth on lifecycle consumption profiles. Housing influenced lifecycle consumption particularly from 2006 onward and for older households. We propose mechanisms that may account for the estimated results employing an overlapping generations model with perceived housing wealth and time varying borrowing constraints.