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a). The paper proves the results on consumption growth, provides an existence proof for optimal consumption and a …
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retirement savings. In particular, we focus on two cognitive mechanisms explaining how and why future monetary outcomes are … implications for retirement savings are discussed …
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The life-cycle theory of saving behavior (Modigliani, 1988) suggests that humans strive towards an equal intertemporal distribution of wealth. However, behavioral life-cycle theory (Shefrin & Thaler, 1988) proposes that people use self control heuristics to postpone wealth until later in life....
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fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry … expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings … account holders. -- Intertemporal consumer choice ; savings ; attention …
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