This paper investigates the presence and strength of internal and external habit formation in consumption, using monthly household data. The habit hypothesis is used to explain empirical regularities in macroeconomics and finance. Empirical studies based on aggregate data (macro-evidence) leave...

This paper uses a behavioral life-cycle model to analyze different pension schemes when people display non-standard consumption preferences and income-heterogeneity. Retirement resources depend on public pension benefits and individual savings accumulated over working life. Individual savings...