Consumption and the extended family

- Empirical tests of the altruism and life-cycle models' predictions are conducted.
- Tests are based on national longitudinal data on consumption and own/extended family income.
- Little to no evidence is found in support of altruism.
- The extended family income affects own consumption, inconsistent with a simple life-cycle model.

This study examines whether resources of the extended family influence consumption. Extending prior tests on just food consumption to total consumption, little to no evidence is found in support of the strict definition of altruism among related households. However, resources of the extended family / dynasty do affect one's own consumption.