intertemporal savings model that has been widely discussed in the literature. We then take up more complete (and necessarily more …

characterize the worker's optimal savings and job-search behavior as well as the resulting consumption paths and wealth formation … spells. Second, consumption increases with wealth both when the worker is employed and unemployed. Third, savings provide … insurance against income fluctuations but this insurance is not perfect; precautionary savings are built up during employment …

We portray the valuation of retirement savings in terms of a mental time travel journey in which a proposed … retirement savings and hence to a lower than desired standard of living in retirement. We consider how the two biases might be …