Goda, Gopi Shah; Shoven, John B.; Slavov, Sita Nataraj - In: American Economic Review 101 (2011) 3, pp. 29-34
We examine changes in subjective probabilities regarding retirement between the 2006 and 2008 waves of the Health and Retirement Study. Using a first-difference approach to eliminate individual heterogeneity, we find that the steep drop in asset prices in 2008 increased the reported probability...