Retirement Consumption Puzzle in Malaysia: Evidence from Bayesian Quantile Regression Model
Joint Authors
Alaudin, Ros Idayuwati
Ismail, Noriszura
Isa, Zaidi
Source
Journal of Probability and Statistics
Issue
Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2019-01-01
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
The objective of this study is to use the Bayesian quantile regression for studying the retirement consumption puzzle, which is defined as the drop in consumption upon retirement, using the cross-sectional data of the Malaysian Household Expenditure Survey (HES) 2009/2010.
Three different measures of consumption, namely, total expenditure, work-related expenditure, and nonwork-related expenditure, are suggested for studying the retirement consumption puzzle.
The results show that the drop in consumption upon retirement is significant and has a regressive distributional effect as indicated by larger drops at lower percentiles and smaller drops at higher percentiles.
The smaller drops among higher consumption retirees (or higher income retirees) may imply that they have more savings and/or retirement benefits than the smaller consumption retirees (or lower income retirees).
Comparison between the three types of consumption shows that the work-related expenditure has a uniform drop across the distribution.
The drop under the nonwork-related expenditure varies across the distribution, implying that it is the source behind the variation of the consumption drop.
American Psychological Association (APA)
Alaudin, Ros Idayuwati& Ismail, Noriszura& Isa, Zaidi. 2019. Retirement Consumption Puzzle in Malaysia: Evidence from Bayesian Quantile Regression Model. Journal of Probability and Statistics،Vol. 2019, no. 2019, pp.1-8.
https://search.emarefa.net/detail/BIM-1186844
Modern Language Association (MLA)
Alaudin, Ros Idayuwati…[et al.]. Retirement Consumption Puzzle in Malaysia: Evidence from Bayesian Quantile Regression Model. Journal of Probability and Statistics No. 2019 (2019), pp.1-8.
https://search.emarefa.net/detail/BIM-1186844
American Medical Association (AMA)
Alaudin, Ros Idayuwati& Ismail, Noriszura& Isa, Zaidi. Retirement Consumption Puzzle in Malaysia: Evidence from Bayesian Quantile Regression Model. Journal of Probability and Statistics. 2019. Vol. 2019, no. 2019, pp.1-8.
https://search.emarefa.net/detail/BIM-1186844
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1186844