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Private and public consumption across generations in Australia
James M Rice1, Jeromey B Temple1, Peter F McDonald1
1Demography and Ageing Unit, Melbourne School of Population and Global Health, University of Melbourne, Melbourne, Victoria, Australia.
Australasian Journal on Ageing
|December 6, 2017
Summary
Australian National Transfer Accounts (NTA) reveal significant intergenerational equity in consumption. While total consumption is equal for ages 20-75, earlier generations faced lower real consumption levels than later ones.
Area of Science:
- Economics
- Demography
- Public Policy
Background:
- Intergenerational equity is crucial for sustainable societies.
- Consumption patterns are influenced by age and generational factors.
- National Transfer Accounts (NTA) provide a framework for analyzing economic flows across age groups.
Purpose of the Study:
- To assess intergenerational equity in consumption within Australia.
- To analyze consumption disparities across different age cohorts and generations.
- To utilize Australian NTA data for a comprehensive equity investigation.
Main Methods:
- Analysis of Australian NTA estimates for consumption.
- Examination of consumption disparities between age groups and generations.
- Longitudinal study covering 1981-1982 to 2009-2010.
Main Results:
- Consumption patterns vary significantly by age, differing between public and private funding.
- High levels of total consumption equality observed for Australians aged 20-75.
- Earlier generations experienced lower real consumption at specific ages compared to subsequent generations.
Conclusions:
- Accurate assessment of intergenerational consumption equity necessitates considering both cohort and cross-sectional data.
- Public and private sector funding of consumption must be analyzed for a complete picture.
- Policy implications for ensuring equitable consumption across generations are highlighted.
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