This paper considers the intertemporal consumption/savings decision when income follows a random walk with drift and … precautionary savings and hence to accumulate more wealth than otherwise. In a calibration exercise it is shown that for a plausible …

. To do so, we specify a structural life-cycle model of the labor supply, savings, and social assistance claiming decisions …, savings, and the labor supplies of all adult household members. We show that the optimal policy mix is dominated by moderately …

and savings decisions of singles and married couples. Partial insurance against wage and employment shocks is provided by … social programs, savings and the labor supplies of all adult household members. The optimal policy mix focuses mainly on …

We revisit the alleged retirement consumption puzzle. According to the life-cycle theory, foreseeable income reductions … endowments after retirement, the theory does predict a fall of total market consumption expenditures. In order not to mistake …-cycle theory. For retirees we also find significant effects of the income reduction at retirement on housing. However, the effects …

structural life-cycle model of singles' and married couples' labor supply and savings decisions. The model includes heterogeneity …