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...