The zero lower bound causes bias in the estimation of linear models. A common solution seen throughout the literature … is to utilize nonlinear models instead. But if said bias were analytically tractable, one could also retain linear …

(PIRs hereafter) and procedures and costs on status quo bias on savings. Status quo bias refers to the enhanced probability … that the status quo bias is lower when the status quo option delivers loss (i.e., NIRs) than when the same option delivers … gain (i.e., PIRs). This status quo bias increases when one must go through procedures and pay costs to switch from the …