Showing 1 - 10 of 64
We study optimal savings in continuous time with exogenous transitions between employment and unemployment as the only …
Persistent link: https://www.econbiz.de/10012892186
Most economic models assume that time preferences are stable over time, but the evidence on their long-term stability is lacking. We study whether and how time preferences change over the life cycle, exploiting representative long-term panel data. We provide new evidence that discount rates...
Persistent link: https://www.econbiz.de/10013239561
We consider a simple, two period, consumption-savings model with future income uncertainty that examines the interplay … of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests … present bias. We predict, and show empirically, that loss aversion reduces savings, and that those who are more loss averse …
Persistent link: https://www.econbiz.de/10014346247
We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to eighteen years, in an incentivized experiment and relate experimental choices to field behavior. Experimental measures of impatience are found to be significant predictors of...
Persistent link: https://www.econbiz.de/10013118350
This paper studies attention allocation behavior of rationally inattentive consumers who have CRRA preferences, face uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to capital income risk, we solve for the optimal...
Persistent link: https://www.econbiz.de/10012892117
study how cash in hand influences decisions in a different but very important domain: savings. Savings accounts are a … promising tool for reducing poverty, but the use of savings accounts is often puzzlingly low. Holding on to cash that needs to … be physically deposited into a savings account may increase the psychological costs of saving. This study experimentally …
Persistent link: https://www.econbiz.de/10012865170
Incomplete markets models imply heterogeneous household savings behaviour which in turn generates pecuniary … in the population, these savings externalities may contribute to inequality. Working with an open economy heterogenous … earnings processes of British households with university and non-university educated heads entail savings externalities that …
Persistent link: https://www.econbiz.de/10012871023
This paper investigates the impact of public employment on household saving rates in China using representative household-level data. After controlling for a series of variables such as income, risk attitude, financial literacy, and demographic factors, we show that households headed by public...
Persistent link: https://www.econbiz.de/10013289689
risk of workers, which mitigates their precautionary savings motive. Using a quantitative model analysis, we show that this …
Persistent link: https://www.econbiz.de/10014079142
We study the design of pension benefits for male and female workers. Women live longer than men but have a lower wage. Individuals can be single or live in couples who pool their incomes. Social welfare is utilitarian but an increasing concave transformation of individuals’ lifetime utilities...
Persistent link: https://www.econbiz.de/10013224069