According to economic theory, well-being or utility depends on consumption. However, at the household level, total consumption is rarely well measured because its collection requires a great deal of survey time. As a result income has been widely used to assess well-being and poverty rates. Yet,...

According to economic theory, well-being or utility depends on consumption. However, at the household level, total consumption is rarely measured because its collection requires a great deal of survey time. As a result income has been widely used to assess economic well-being and poverty rates....

This chapter provides an overview of the economic models that explain the concept of retirement and consumption and saving. The chapter discusses the empirical evidence about the models. The discussion is in the context of data from the United States because US data are more extensive than data...