I study how the cognitive demands of financial planning shape household decisionmaking with respect to consumption out of windfall income shocks. I build a quantitative model of bounded rationality in which reoptimization is costly. Households respond to windfall income shocks by choosing a...

We analyze how pension wealth influences retirement timing using 25 years of Danish administrative panel data on wealth and labor market status. Exploiting early-career variation in firm-specific mandatory pension contribution rates, we study labor supply decisions from age 55 onward. Greater...

Savings play a critical role in both individual financial well-being and economic development. This article examines the impact of financial literacy, income, educational level, and age on saving decisions across 136 countries, using data from the Global Financial Inclusion Database (2021) and...

Low-income individuals are unlikely to save relatively large sums on a regular basis; however, many still fall short of even the modest threshold required for long-term financial security. This study examines the determinants of benchmark-defined undersaving among retail e-payment agents (REAs)...

In the context of Japan's rapidly aging population, people's anxiety about life after 65, especially regarding financial sustainability, has become a growing concern. This study examines old age anxiety through the lens of digital financial literacy (DFL), which can significantly impact people's...

This study models a representative agent with generalized disappointment aversion preferences in an endowment economy. This model addresses the average upward slope in U.S. real bond yields, equity premium puzzle, and equity volatility puzzle. We integrate a two-state Markov switching process...

The study examines the degree of current account deficit (CAD) sustainability and capital mobility for a panel of 97 countries over the period 1980-2020. To this end, the study adopts a novel interpretation of the Feldstein-Horioka coefficient in the context of CAD sustainability and examines...

The question of whether affluent households save at a higher rate than other parts of the distribution has been asked by economists on numerous occasions since the 1950s. It is standard in this research to define affluent, or "rich," households as those with high lifetime earnings or income to...

This study addresses the critical challenge of designing retirement savings systems that effectively balance liquidity needs and long-term accumulation in contexts characterized by high unemployment and labor market instability, with a focus on South Africa. Traditional pension schemes often...

Private pensions constitute the largest component of household wealth in the UK, and the vast majority of employees are automatically enrolled into workplace pension plans. Drawing on employer-reported pension data matched with the population census, we document that Bangladeshi and Pakistani...

In this paper, we discuss bequests and other intergenerational transfers and what impact they have on the consumption, saving, and labor supply behavior of households. We show that bequests and other intergenerational transfers are prevalent in most countries, that they are sometimes motivated...

The Delegated Act on low-carbon hydrogen establishes a harmonised, transparent framework, defining fuels in a technology-open way. It is essential for a functioning hydrogen market but does not create demand or financial incentives. Achieving emissions reduction targets will hinge on robust...

The Delegated Act on low-carbon hydrogen establishes a harmonised, transparent framework, defining fuels in a technology-open way. It is essential for a functioning hydrogen market but does not create demand or financial incentives. Achieving emissions reduction targets will hinge on robust...

This study evaluates the long-term financial outcomes of Roth and traditional IRAs, with their different tax advantages. Global applicability to countries with similar types of retirement plans is emphasized. A full factorial simulation assessed 54 unique combinations of IRA type, investment...