Leisure Expenditures of Retired and Near-Retired Households

Abstract

This study examines the determinants of household expenditures on active and passive leisure by using a double-hurdle model to distinguish between the decision to purchase and the decision of expenditure. The analyzed data were the 1995 Consumer Expenditure Survey. Retirement was a significant variable in explaining leisure expenditures and the effect varied by type of leisure expenditure. Greater income elasticities for active, as compared to passive, leisure as well as for retired, as compared to near-retired, households indicate the growing importance of leisure as one enters retirement.

KEYWORDS:

• Leisure expenditures
• retired
• elasticities