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On average, "young" people underestimate whereas "old" people overestimate their chances to survive into the future. We adopt a Bayesian learning model of ambiguous survival beliefs which replicates these patterns. The model is embedded within a non-expected utility model of life-cycle...
Persistent link: https://www.econbiz.de/10013092823
empirical joint distribution of liquid assets and income. Second, the bias alters the distribution of marginal propensities to … consume which makes government stimulus policies less effective. …
Persistent link: https://www.econbiz.de/10012495059
This paper analyzes the main uncertainty of college saving - the child’s ability - in the context of the saving with learning model. The first section develops a dynamic model combining asset accumulation and learning to explain the parents’ forward-looking saving behavior when they are...
Persistent link: https://www.econbiz.de/10009625571
Deviations of market participants forecasts from full-information rational expectations (FIRE) are usually specified to arise from limited information or irrationality. Relying on a novel theoretical characterization, we present empirical evidence that these specifications are inconsistent with...
Persistent link: https://www.econbiz.de/10013296992
This paper investigates the roles psychological biases play in deviations between subjective survival beliefs (SSBs) and objective survival probabilities (OSPs). We model deviations between SSBs and OSPs through age-dependent inverse S-shaped probability weighting functions. Our estimates...
Persistent link: https://www.econbiz.de/10012303266
This paper investigates the roles psychological biases play in deviations between subjective survival beliefs (SSBs) and objective survival probabilities (OSPs). We model deviations between SSBs and OSPs through age-dependent inverse S-shaped probability weighting functions. Our estimates...
Persistent link: https://www.econbiz.de/10012062116
paper, I propose and empirically test a behavioural model of social mobility perceptions based on the self-serving bias …, using the ISSP Social Inequality Cumulative. The self-serving bias states that people blame external circumstances for their … the self-serving bias, that personal experiences with social mobility only influence people's perceptions of societal …
Persistent link: https://www.econbiz.de/10012841727
evidence has not properly taken into account the search and decision costs related to Riester pensions. I use information on … are determinants of their children´s preferences and ability in financial decision making, however, omission does not seem …
Persistent link: https://www.econbiz.de/10014157944
evidence has not properly taken into account the search and decision costs related to Riester pensions. I use information on … are determinants of their children's preferences and ability in financial decision making, however, omission does not seem …
Persistent link: https://www.econbiz.de/10013101557
evidence has not properly taken into account the search and decision costs related to Riester pensions. I use information on … are determinants of their children’s preferences and ability in financial decision making, however, omission does not seem …
Persistent link: https://www.econbiz.de/10009578791