Time inconsistency and retirement choice

Findley, T. Scott; Frank N. Caliendo

Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of why people borrow so much and why they wait so long to save for retirement. We reach a different set of conclusions. We show that if financial planning is enriched to include the choice of when to retire, then nai͏̈ve hyperbolic discounters may borrow far less and start saving for retirement significantly earlier than exponential discounters.

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Year of publication:	2015
Authors:	Scott, Findley, T. ; Caliendo, Frank
Publisher:	München : CESifo
Subject:	hyperbolic discounting \| naiveté \| retirement choice \| time inconsistency \| life-cycle consumption and saving \| Zeitkonsistenz \| Time consistency \| Altersgrenze \| Retirement \| Sparen \| Savings \| Intertemporale Entscheidung \| Intertemporal choice \| Theorie \| Theory \| Lebenszyklus \| Life cycle \| Altersvorsorge \| Retirement provision \| Einkommenshypothese \| Income hypothesis \| Konsumentenverhalten \| Consumer behaviour \| Diskontierung \| Discounting

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Extent:	Online-Ressource (11 S.) graph. Darst.
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. 5208
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/107300 [Handle]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D03 - Behavioral Economics; Underlying Principles ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010479952