The Life-Cycle Hypothesis: An Assessment of Some Recent Evidence

This essay first reviews the basic empirical predictions of the life cycle hypothesis of consumption, namely that individuals should try to smooth intertemporally the marginal utility of consumption, that young workers should be accumulating resources for retirement, and that the elderly should be decumulating these resources. In the second part of the essay, we assess recent empirical evidence on these predictions.

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Year of publication:	2009
Authors:	Pistaferri, Luigi
Published in:	Rivista di Politica Economica. - SIPI Spa, ISSN 0035-6468. - Vol. 99.2009, 2, p. 35-65
Publisher:	SIPI Spa
Subject:	consumption \| retirement \| saving

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Type of publication:	Article
Classification:	D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving ; J26 - Retirement; Retirement Policies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010858712