Waldkirch, Andreas, Serena Ng, and Donald Cox. 2004. "Intergenerational Linkages in Consumption Behavior." Journal of Human Resources 39(2): 355-381.

We investigate familial relationships in consumption patterns using a sample of parents and their children from the Panel Study of Income Dynamics. We find a positive and statistically significant parent-specific effect on children's consumption even after controlling for the effect of parental income. This correlation is found in different measures of consumption, and is not sensitive to private transfers. In contrast, the correlation is not statistically significant between pairs of households that are not related. The evidence is quite strong that income is not the only source of a parental effect in consumption behavior of their offspring.

Andreas Waldkirch is an assistant professor of economics at Oregon State University. Serena Ng is a professor of economics at the University of Michigan. Donald Cox is a professor of economics at Boston College. This paper was presented at the 2000 World Congress of the Econometric Society, Vanderbilt University, and the consumption workshop at the University of Chicago. The authors thank the seminar participants for their suggestions. They also thank Alwyn Young, Nicholas Souleles, John Laitner and two referees for many helpful comments on an earlier draft. The data used in this article can be obtained beginning October 2004 through September 2007 from Andreas Waldkirch, Dept. of Economics, Oregon State University, Corvallis, OR 97331, email: andreas.waldkirch@oregonstate.edu.