This article empirically investigates the common assumption of economic agents’ capabilities to process complex mathematical problems to find optimal strategies applied in economic modelling. By exploiting a design difference in the game show <italic>Jeopardy</italic> between the US and Sweden, we obtain a...

Most countries including Sweden have an ageing population. The costs of the welfare state increase with the old age share, leading to problems for public finances. If the number of hours worked increases, tax revenues increase and less income transfers are paid out. A higher retirement age is...