future wages, and the present value of foregone wages decreases with age. Consumption is hump shaped whether the wage is hump …

set aside, but the necessary amount decreases with age which allows consumption to increase in the early part of life. At … some age, the impatience outweighs the habit concerns so that consumption starts to decrease. We derive the optimal … consumption strategy in closed form, deduce sufficient conditions for the presence of a consumption hump, and characterize the age …

that are low or zero for many young agents and then gradually increasing over life, (ii) an age- and wealth …

. In order to disentangle age effects from cohort and period factors, we estimate individual fixed-effects models …

set aside, but the necessary amount decreases with age which allows consumption to increase in the early part of life. At … some age, the impatience outweighs the habit concerns so that consumption starts to decrease. We derive the optimal … consumption strategy in closed form, deduce sufficient conditions for the presence of a consumption hump, and characterize the age …

affecting future wages. We show optimal consumption is hump shaped and determine the peak age. The hump results from consumption … education, which lowers future wages, and the present value of foregone wages decreases with age. Consumption is hump shaped …

observed saving, work, and claiming age behavior of U.S. households. In particular, our model generates a large peak at the … earliest claiming age at 62, as in the data. Also in line with the evidence, our baseline results show a smaller second peak at … the (system-defined) Full Retirement Age of 66. In the context of a zero-return environment, we show that workers will …