Using pseudo-panel data, we estimate the structuralparameters of a life--cycle consumption model with discrete laborsupply choice. A focus of our analysis is the abrupt drop inconsumption upon retirement for a typical household. Theliterature sometimes refers to the drop, which in the...

We introduce a tractable model of post-retirement saving behavior in which households have a precautionary motive arising from uninsured health status risks. The model distinguishes between annuitized and non-annuitized wealth, emphasizes the importance of asset composition in determining...