An analysis of expenditures by the elderly for apparel, household textiles, and related services

Data from the 1984 and 1985 Consumer Expenditure Surveys were used to estimate average annual expenditures for apparel, household textiles, and related services. 3,822 Consumer Units were divided into four age groups. Expenditures were determined for specific product types and characterized as to whether they were intended for use within the household or intended as gifts outside of the household. The proportion of zero expenditures for each product type was determined.;Tobit analysis was used to determine the effect of a set of socioeconomic and demographic variables upon expenditures for apparel, household textiles, and related services by 920 consumer units with a reference person aged 65 or older. It was determined that a double-log form of total expenditures provided the highest R2 results. Tobit coefficients provide unbiased estimates of the relationship between the independent variables and expenditures.;Results indicated that elasticities for apparel and total textile products and services were slightly elastic, indicating that these goods were luxuries. Expenditure elasticities for household textiles and related services were less than unitary.;Total expenditures, the proxy for income, had the strongest effect on expenditures. The size of the CU was related to positive changes in expenditures for all but related services.;Expenditures decreased with increasing age. Nearly 80% of expenditures for total textile products and services were for clothing, 12.5% for household textiles, and 8% for related services. Approximately 10% of expenditures for total textile products and services were for gifts outside of the CU. Of the CU's surveyed, 3% had zero expenditures for apparel, 34% for household textiles, and 23% for related services.;The full-time employment of the reference person was positively related to increased expenditures for all of the dependent variables. A CU with a black reference person spent significantly more per dollar expenditure than a non-black reference person only for related services.;A female-headed CU was related to increases in expenditures for apparel, household textiles, and total textile products. Expenditures for total textile products and services increased as the education of the reference person increased.