This paper formulates a model of retirement behavior based on the solution to a stochastic dynamic programming problem. The workers objective is to maximize expected discounted utility over his remaining lifetime. At each time period the worker chooses how much to consume and whether to work...

Immigration is having an increasingly important effect on the social insurance system in the United States. On the one hand, eligible legal immigrants have the right to eventually receive pension benefits, but also rely on other aspects of the social insurance system such as health care,...

This paper uses panel data from the Health and Retirement Study to estimate the relationship between measures of labor supply flexibility and portfolio-choice decisions by utility-maximizing individuals. Seminal research on portfolio decisions over the life-cycle, and recent research on...

Recent work on retirement age expectation formation of older Americans shows that people on average form expectations rationally (Benítez-Silva and Dwyer, 2003a) Over time, individuals efficiently incorporate uncertainty over their own health and socio-economic situation, as well as their...