Generational consumption in the light of household life-cycles

Abstract

AIMS OF THE PAPER
Studies on generational consumption often don’t consider life-cycle variations in expenditures. Present study examines the effect of household life-cycle stages on household consumption.

METHODOLOGY
The matching method was used to establish a quasi-experimental arrangement in order to approximate as closely as possible the causal relationship between belonging to a life-cycle group and expenditure structure.

MOST IMPORTANT RESULTS
Results indicate which product categories are not dependent on household life-cycle stages and others with significant household life-cycle effects related to generational consumption.

RECOMMENDATIONS
Based on the results, the life-cycle concept should be considered for the understanding of generational spending, especially whether a person lives with or without a partner and has or does not have children in the household.