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We analyse life-cycle saving decisions when households use simple heuristics, or rules of thumb, rather than solve the underlying intertemporal optimization problem. We simulate life-cycle saving decisions using three simple rules and compute utility losses relative to the solution of the...
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affects the saving behavior of the subjects. Savings are higher when they are incentivized with matching contributions than …
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full efficiency. The effect of the inability to commit across time on the savings level is examined under a tractable …
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