This paper addresses whether households save enough for their retirement. For successive date-of-birth cohorts the authors analyze income and expenditure patterns around the time of retirement. They find a fall in consumption as household heads retire which cannot be fully explained by a...

A well-known problem with revealed preference methods is that when data are found to satisfy their restrictions it is hard to know whether this should be viewed as a triumph for economic theory, or a warning that these conditions are so undemanding that almost anything goes. This paper allows...