Income and Food Expenditures Decomposed by Cohort, Age, and Time Effects

Overview

This report expands aggregate lifecycle expenditure analysis by separating generational or cohort effects from aging effects. This is important since different generations or age groups may exhibit expenditure patterns that are the result of higher incomes and/or different tastes and preferences. Ignoring these generational effects produces income and consumption age profiles that can be misleading. With accurate consumption and age profiles, policymakers can gain a better idea of food intake patterns by cohort, and there-by identify groups that may need additional diet and health information.