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The Value of Household Life Cycle Variables in Consumer Expenditure Research: An Empirical Examination
- Article from:
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Canadian Journal of Administrative Sciences
- Article date:
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December 1, 2007
- Author:
- Putler, Daniel S; Li, Tieshan; Liu, Yong
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Copyright informationCopyright Administrative Sciences Association of Canada Dec 2007. Provided by ProQuest LLC. (Hide copyright information)
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Abstract
We examine why studies reach contradictory conclusions concerning the value of the household life cycle model as a predictive tool in consumer expenditure research. Using a database of roughly 14,000 Canadian households, we find that household life cycle variables do not generally enhance prediction over a more parsimonious model containing a basic set of socioeconomic and demographic variables, even when comparing less aggregated to more aggregated expenditure categories. However, they do enhance prediction for categories that are defined such that the typical users of the category fall into a fairly narrow age range. The theoretical and applied significance of our findings are ...
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