This paper shows that the combination of habit formation - present consumption creating additional consumption needs in the future - and myopia may explain why some retirees are forced to "unretire", i.e., unexpectedly return to work. It also shows that when myopia about habit formation leads to...

It is often argued that implicit taxation on continued activity of elderly workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. The point of this paper is that when...

Die europäische Bevölkerung lebt immer länger, aber sie geht auch immer früher in Rente. Immer mehr Personen verbringen immer mehr Zeit im Ruhestand. Diese Tatsache verursacht immer größere Probleme für die staatlichen Rentensysteme. Dieser Artikel versucht Gründe für steigende Zahl vom...

It is often argued that implicit taxation on continued activity of elderly workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. The point of this paper is that when...