Based on the insights of Loewenstein's (1988) reference point model, we specify structural model for intertemporal choice that incorporates loss aversion and reference points. We consider four scenarios: Delay of gains, delay of losses, speed-up of gains, and speed-up of losses, using six years...

The life-cycle theory of saving behavior (Modigliani, 1988) suggests that humans strive towards an equal intertemporal distribution of wealth. However, behavioral life-cycle theory (Shefrin & Thaler, 1988) proposes that people use self control heuristics to postpone wealth until later in life....