This paper develops a dynamic structural life-cycle model to study how heterogeneous health and medical spending shocks affect the savings behavior of the elderly. Individuals are allowed to respond to health shocks in two ways: they can directly pay for their health care expenses (self-insure)...

This paper explores the stability of the stationary state for a dynamic growth model with wealth and human capital accumulation. Knowledge is created through research and learning-by-doing, while the time allocation between labor and leisure is endogenized. We analyze the model in both its...

The time evolution of prices and savings in a stock market is modeled by a discrete-delay nonlinear dynamic system. The proposed model has a unique and unstable steady-state, so its time evolution is determined by the nonlinear effects acting out of the equilibrium. We perform the analysis of...

We report the results of two laboratory experiments that study how university student and staff participants chose retirement savings investment options using ‘user-friendly' information prescribed by regulators. We demonstrate that choices of more than 20% of participants cannot be predicted...

Low levels of non-default decision making among superannuation members in Australia are assumed to be evidence of lack of interest and capability. Using member records and survey data from a large Australian superannuation fund we test the relationship between attitudes towards retirement...

Policy-makers world-wide have proposed a new contract – the “social impact bond” (SIB) – which they claim can allay the underperformance and underfunding afflicting not-for-profit sectors, by tying the private returns of (social) investors to the success of social programs (Bolton 2010;...