Figure 1.
The two parts are labelled a and b. Panel a plots mean age on the horizontal axis and log non-durable consumption on the vertical axis. Four cohorts are identified by markers and lines: youngest cohort, aged fifty seven to sixty-three, aged sixty-two to sixty-eight, and oldest cohort. Each cohort has multiple data points connected by lines across increasing mean age. Panel b presents predictive margins of age with ninety-five per cent confidence intervals. The vertical axis is linear prediction of log consumption and the horizontal axis is age in years. Four small panels correspond to the oldest cohort, aged sixty-two to sixty-eight during the sample period, aged fifty-seven to sixty-three over the sample period, and the youngest cohort. Each panel contains points with vertical error bars.Consumption over the life cycle (EPC 1977–1983). a) Average consumption by cohort; b) Marginal effects of age on log consumption by cohort