Recent work on retirement age expectation formation of older Americans shows that people on average form expectations rationally (Benítez-Silva and Dwyer, 2003a) Over time, individuals efficiently incorporate uncertainty over their own health and socio-economic situation, as well as their...

This paper presents a dynamic model of the joint labor/leisure and consumption/saving decision over the life cycle. Such a dynamic model provides a framework for considering the important policy experiments related to the reforms in Social Security. We address the role of labor supply in a life...

This paper estimates a dynamic model of price discrimination and inventory investment under incomplete information. The model is motivated from an empirical analysis of operations of daily observations on inventories, sales, and purchases of over 2,300 individual products by a U.S. steel...