Guha, Brishti; Guha, Ashok - In: Topics in Macroeconomics 8 (2008) 1, pp. 1541-1541
We examine a model in which the utility function has been engineered so that it is optimal for consumers to aim for a fixed target level of retirement resources. In this case, consumption displays excess sensitivity to current income as well as perfect old age insurance. In an overlapping...