Tehran Institute for Advanced Studies (TEIAS)

/ Heterogeneity in Household Spending and Well-being on Retirement __ FRANCESCA PARODI


Heterogeneity in Household Spending and Well-being on Retirement (joint with P. Moran, M. O`Connell & C. O`Dea)

TeIAS Seminar - Francesca Parodi

December 11, 2023
(20 Azar, 1402)



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December 10, 2023

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Assistant Professor of Economics, Cattolica University of Milan


We study heterogeneity in spending patterns around the time of retirement. Using rich consumption data from the Panel Study of Income Dynamics, and exploiting within-household variation in spending, we systematically classify households into three groups based on whether they experience a stable, increasing, or decreasing pattern of non-durable spending on retirement. We find that households with a stable transition are substantially better off than the other two groups and that households that cut spending at retirement have similar socioeconomic status, but higher wealth, with respect to households that increase spending. Using a theoretical framework, we characterize two classes of mechanisms capable of driving these observed patterns: non-separable preferences between consumption and leisure and behavioral biases.


Francesca Parodi

Francesca is an Assistant Professor of Economics at Cattolica University of Milan, she is also Research Fellow at the Institute for Fiscal Studies and Research Affiliate of CEPR. Her main research interests are Macroeconomics, Public Economics, and Household Finance. She obtained her PhD in Economics from University College London.