Durable Purchases over the Later Life Cycle1. (31st December 2014)

• Record Type: Journal Article
• Authors: Browning, Martin; Crossley, Thomas F.; Lührmann, Melanie
• Is Part Of: Oxford bulletin of economics and statistics. Volume 78:Number 2(2016:Apr.)
• Page Start: 145
• Page End: 169
• Publication Date: 2014-12-31
• Subjects: Economic history -- Periodicals; Great Britain -- Economic conditions -- Periodicals; 330.9
• DOI: 10.1111/obes.12085
• Languages: English
• ISSNs: 0305-9049

Abstract

Abstract: We investigate life‐cycle patterns of demand for services from household durables using UK panel data. We take careful account of prices, demographics, labour supply and health. Demand for consumer electronics rises with age, while the demand for household appliances is flat. These findings contrast with the well documented decline in non‐durable consumption at older ages, and suggest that studies that estimate the overall discount rate from nondurable consumption may underestimate consumer patience and the savings required to fund retirement. We also find important non‐separabilities between the demand for durables, labour supply and health status.