Saving and consumption when children move out : conference paper

Klos, Alexander; Rottke, Simon

Based on the German Socio-economic Panel (SOEP), we show that household consumption drops and saving rises significantly within four years after a child moves out of a household. Per capita consumption of parents is approximately leveled up to that of childless peers after all children are gone. We conclude with respect to the adequacy of saving rates that calibrated life-cycle models assuming a smoothing of per capita consumption for parents with children in the household underestimate the wealth needed to smooth consumption in the long run.

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Year of publication:	2013
Authors:	Rottke, Simon ; Klos, Alexander
Published in:	Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung Session: Household behavior ; V3
Publisher:	[Kiel : ZBW
Subject:	Consumption \| Saving \| Children \| Life-cycle hypothesis \| Sparen \| Savings \| Privater Konsum \| Private consumption \| Deutschland \| Germany \| Kinder \| Altersvorsorge \| Retirement provision \| Haushaltsökonomik \| Household economics \| Italien \| Italy \| Lebenszyklus \| Life cycle \| Konsumtheorie \| Consumption theory