Consumption expenditure declines sharply at the time of retirement for many households, but the majority maintain a … smooth consumption path. A simple life cycle model with uncertainty about the time of retirement can account for this pattern … consumption expenditure at retirement generated by the model is zero, while the mean is negative, matching the HRS data. However …

SAVING DOES NOT EQUAL INVESTMENT John Maynard Keynes confused economists and politicians all over the world when he … wrote, “Saving is necessary to equal investment” together with a few equations to confirm his idea and finally concluding … that S = I. There have been repeated discussions about how saving can equal investment, accidentally or with certainty. We …

We analyze the impact of an increase in the risk of divorce on the saving behaviour of married couples. From a … in 1996 as an exogenous increase in the likelihood of marital dissolution. We analyze the saving behaviour over time of …

correlation between the return on housing investment and consumption not only implies positive relationship between the portfolio … share of housing investment and excess return but also renders the housing wealth inappropriate in consumption smoothing. We …A house is generally considered as a 'roof over one's head', however, housing can be regarded as an investment or asset …

have an incentive to signal that he is in great need by saving more than he otherwise would have done. …

taxation is concerned, the most substantive recommendation of the Mirrlees Review is a move toward a system of consumption or … expenditure taxation, by exempting the "normal return" to saving and taxing only "excess returns" on the same tax schedule as …

consistent with these trends. When households care about their consumption relative to others, individual saving rates decrease … average saving rate decreased by eight percentage points. Over the same period the US experienced a substantial increase in … inequality and a continuous decrease in the aggregate saving rate. We propose an explanation based on interpersonal comparisons …

supplies, saving and full consumption for two-adult households over the life cycle. These data are used to test the life cycle …, consumption and saving over their life cycle in the face of this capital market imperfection. This model explains the data much … significantly in their saving behaviour in a way that depends on secondary earner labour supply, with a strong positive association …