Consumption versus Expenditure

PDF – Journal link

Citation

Aguiar, Mark, and Eirk Hurst (2005): “Consumption versus Expenditure,” Journal of Political Economy, 113(5): 919-948.

Abstract

Previous authors have documented a dramatic decline in food expenditures at the time of retirement. We show that this is matched by an equally dramatic rise in time spent shopping for and preparing meals. Using a novel data set that collects detailed food diaries for a large cross-section of U.S. households, we show that neither the quality nor the quantity of food intake deteriorates with retirement status. We also show that unemployed households experience a decline in food expenditure and food consumption commensurate with the impact of job displacement on permanent income. These results highlight how direct measures of consumption distinguish between anticipated and unanticipated shocks to income while measures of expenditures obscure the distinction.

BibTeX Cite:

@article {AguiarHurst2005,
	title = {Consumption versus Expenditure},
	journal = {Journal of Political Economy},
	volume = {113},
	number = {5},
	year = {2005},
	pages = {919-948},
	abstract = {Previous authors have documented a dramatic decline in food expenditures at the time of retirement.  We show that this is matched by an equally dramatic rise in time spent shopping for and preparing meals.  Using a novel data set that collects detailed food diaries for a large cross-section of U.S. households, we show that neither the quality nor the quantity of food intake deteriorates with retirement status.  We also show that unemployed households experience a decline in food expenditure and food consumption commensurate with the impact of job displacement on permanent income.  These results highlight how direct measures of consumption distinguish between anticipated and unanticipated shocks to income while measures of expenditures obscure the distinction.},
	author = {Aguiar, Mark and Hurst, Erik},
	url={https://doi.org/10.1086/491590}
	}