Life-cycle consumption patterns at older ages in the US and the UK: Can medical expenditures explain the difference?
In this paper we document significantly steeper declines in nondurable expenditures in the UK compared to the US, in spite of income paths being similar. We explore several possible causes, including different employment paths, housing ownership and expenses, levels and paths of health status, and out-of -pocket medical expenditures. Among all the potential explanations considered, we find that those to do with healthcare - differences in levels, age paths, and uncertainty in medical expenses - are the main factor accounting for the steeper declines in nondurable expenses in the US compared to the UK.
Year of publication: |
2015
|
---|---|
Authors: | Banks, James ; Blundell, Richard ; Levell, Peter ; Smith, James P. |
Publisher: |
London : Institute for Fiscal Studies (IFS) |
Saved in:
freely available
Series: | IFS Working Papers ; W15/12 |
---|---|
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 10.1920/wp.ifs.2015.1512 [DOI] 821165054 [GVK] hdl:10419/119565 [Handle] |
Classification: | D10 - Household Behavior and Family Economics. General ; D11 - Consumer Economics: Theory ; D12 - Consumer Economics: Empirical Analysis ; D14 - Personal Finance ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving |
Source: |
Persistent link: https://www.econbiz.de/10011335621