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What Is a Commody? Two Axiomatic Anwers.
Sprumont, Y. - Centre Interuniversitaire de Recherche en Économie … - 2001
we identify conditions under which preferences over sets of construction opportunities can be reduced to preferences …
Persistent link: https://www.econbiz.de/10005346001
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Can Subjective Mortality Expectations and Stated Preferences Explain Varying Consumption and Saving Behaviors among the Elderly?
Salm, Martin - Institute for the Study of Labor (IZA) - 2006
This study investigates how subjective mortality expectations and heterogeneity in time and risk preferences affect the … cannot be explained by differences in preferences. In contrast, this study identifies a strong relationship between answers … to survey questions about time and risk preferences and consumption and saving behaviors. This paper uses data on …
Persistent link: https://www.econbiz.de/10005822956
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What's Psychology Worth? A Field Experiment in the Consumer Credit Market
Bertrand, Marianne; Karlan, Dean; Mullainathan, Sendhil; … - The Field Experiments Website - 2006
Numerous laboratory studies find that minor nuances of presentation and description change behavior in ways that are inconsistent with standard economic models. How much do these context effects matter in natural settings, when consumers make large, real decisions and have the opportunity to...
Persistent link: https://www.econbiz.de/10005490038
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Life cycle saving: Insights from the perspective of bounded rationality
Binswanger, Johannes - In: European Economic Review 56 (2012) 3, pp. 605-623
This paper provides a new life cycle model that takes into account key elements of bounded rationality. The paper shows that the model can account for patterns in the data that are hard to explain by the standard life cycle model. Among other patterns, the model predicts that, typically, the...
Persistent link: https://www.econbiz.de/10010573230
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Towards Understanding Life Cycle Savings of Boundedly Rational Agents : A Model with Feasibility Goals (Revision of DP 2008-14)
Binswanger, Johannes - Tilburg University, Center for Economic Research - 2010
This paper develops a new life cycle model that aims to describe the savings and asset allocation choices of boundedly rational agents. In this model, agents make forward-looking decisions without the requirement of anticipating their actual future decisions. Instead, agents pursue two simple...
Persistent link: https://www.econbiz.de/10011091641
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Towards Understanding Life Cycle Saving Of Boundedly Rational Agents : A Model With Feasibility Goals - Replaced by CentER Discussion Paper 2010-138
Binswanger, Johannes - Tilburg University, Center for Economic Research - 2008
This paper develops a new life cycle model that aims to describe the savings and asset allocation decisions of boundedly rational agents. The paper’s main theoretical contribution is the provision of a simple, tractable and parsimonious framework within which agents make forward looking...
Persistent link: https://www.econbiz.de/10011092155
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A Simple Bounded-Rationality Life Cycle Model
Binswanger, Johannes - Tilburg University, Center for Economic Research - 2008
Life cycle saving decisions belong to the most complex financial decisions that we are faced with in our life. Psychologists have found that when making complex decisions people use short-cuts in the form of minimum requirements for particular attribute categories of choice options. This paper...
Persistent link: https://www.econbiz.de/10011092485
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Belief Formation, Second Version
Compte, Olivier; Postlewaite, Andrew - Department of Economics, University of Pennsylvania - 2009
Consider an agent who is unsure of the state of the world and faces computational bounds on mental processing. The agent receives a sequence of signals imperfectly correlated with the true state that he will use to take a single decision. The agent is assumed to have a finite number of "states...
Persistent link: https://www.econbiz.de/10010556294
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Optimal Age-Based Portfolios with Stochastic Investment Opportunity Sets
Ruffino, Doriana - 2009
In an environment with stocks and short-term debt, random changes in the risk-reward frontier produce hedging demands for equities, implying that portfolio policies supporting optimal life-cycle consumption are rarely mean-variance efficient. Pursuing optimal life-cycle portfolio policies is...
Persistent link: https://www.econbiz.de/10012721591
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Lines of Credit and Consumption Smoothing
Dey, Shubhasis - 2009
Lines of credit (LOCs) are widely used by consumers. Here, we try to understand the major motives of such prevalent use. We model LOCs as instruments of consumption smoothing across states and time periods. A fundamental feature of insurance contracts is that insurance premiums are payable at...
Persistent link: https://www.econbiz.de/10012721626