We study how cognitive ability and financial literacy relate to each step of the planning process for retirement, that is, individuals’ propensity to plan, planned savings amounts, and actual economic outcomes (savings, portfolio choice, annuity purchase). We find that cognitive ability and...

Counterparty credit risk (CCR), a key driver of the 2007-08 credit crisis, has become one of the main focuses of the major global and U.S. regulatory standards. Financial institutions invest large amounts of resources employing Monte Carlo simulation to measure and price their counterparty...