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Friday, May 15, 2020 | History

3 edition of Some answers to the retirement-consumption puzzle found in the catalog.

Some answers to the retirement-consumption puzzle

Michael D. Hurd

Some answers to the retirement-consumption puzzle

by Michael D. Hurd

  • 102 Want to read
  • 18 Currently reading

Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

    Subjects:
  • Older people -- Economic conditions -- Mathematical models,
  • Consumption (Economics) -- United States,
  • Consumption (Economics) -- Great Britain

  • Edition Notes

    StatementMichael D. Hurd, Susann Rohwedder.
    SeriesNBER working paper paper series -- no. 12057., Working paper series (National Bureau of Economic Research) -- working paper no. 12057.
    ContributionsRohwedder, Susann., National Bureau of Economic Research.
    The Physical Object
    Pagination34 p. :
    Number of Pages34
    ID Numbers
    Open LibraryOL17628892M
    OCLC/WorldCa64583798

    In this paper we investigate the size of the consumption drop at retirement in Italy. We use micro data on food and total non-durable household spending covering the period , and evaluate the change in consumption that accompanies retirement by exploiting the exogenous variability in pension eligibility to correct for the endogenous nature of the retirement decision. We take a. The Retirement-Consumption Puzzle: Theory and Empirical Evidence College University of Mannheim Course Seminar in Bankbetriebslehre und Behavioral Finance Grade 1,0 Author Kevin Rink (Author) Year Pages 23 Catalog Number V ISBN (eBook) ISBN (Book) File size KB Language.

    Abstract. Previous research finds a systematic fall in consumption at retirement, even when these retirements are expected, which implies households do not behave as predicted by the lifecycle/ permanent income hypothesis. 1. Introduction. A considerable body of literature has documented a retirement consumption puzzle, that is, household consumption dropping substantially at retirement, which is inconsistent with the consumption-smoothing hypothesis by Modigliani and Brumberg () and Friedman (). 2 Several explanations have been proposed to reconcile the empirical puzzle with the consumption-smoothing.

    Hurd, M. and S. Rohwedder () ‘Some Answers to the Retirement-Consumption Puzzle’ RAND working paper WR Google Scholar Hurd, M. and S. Rohwedder () ‘Adequacy of Resources in Retirement’, prepared for the 10th Annual Joint Conference of the Retirement Research Consortium ‘Creating a Secure Retirement System’, August Retirement and Consumption in a Life Cycle Model* The “retirement-consumption puzzle” has attracted considerable attention from is, suppose consumption behavior is determined by some version of the life cycle model with uncertainty about the timing of retirement. Would .


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Some answers to the retirement-consumption puzzle by Michael D. Hurd Download PDF EPUB FB2

Some Answers to the Retirement-Consumption Puzzle Michael D. Hurd, Susann Rohwedder. NBER Working Paper No. Issued in February NBER Program(s):Economics of Aging, Economic Fluctuations and Growth The simple one-good model of life.

COVID Resources. Reliable information about the coronavirus (COVID) is available from the World Health Organization (current situation, international travel).Numerous and frequently-updated resource results are available from this ’s WebJunction has pulled together information and resources to assist library staff as they consider how to handle coronavirus.

Some Answers to The Retirement-Consumption Puzzle Michael D. Hurd and Susann Rohwedder The simple one-good model of life-cycle consumption requires “consumption smoothing.” According to previous results based on partial spending and on synthetic panels, British and U.S.

households apparently reduce consumption at retirement. The. This fall in expenditure has become known as the 'retirement-consumption puzzle.' We analyse HILDA Survey data from waves 1 to 6 to assess the Australian evidence on the retirement-consumption puzzle.

Downloadable. The simple one-good model of life-cycle consumption requires “consumption smoothing.” According to previous results based on partial spending and on synthetic panels, British and U.S.

households apparently reduce consumption at retirement. The reduction cannot be explained by the simple one-good life-cycle model, so it has been referred to as the retirement-consumption by: The reduction cannot be explained by the simple one-good life-cycle model, so it has been referred to as the retirement-consumption puzzle.

An interpretation is that at retirement individuals discover they have fewer economic resources than they had anticipated prior to Cited by: Some Answers to the Retirement-Consumption Puzzle Michael D.

Hurd and Susann Rohwedder NBER Working Paper No. February JEL No. D91, J26 ABSTRACT The simple one-good model of life-cycle consumption requires "consumption smoothing." According to previous results based on partial spending and on synthetic panels, British and U.S.

Get this from a library. Some answers to the retirement-consumption puzzle. [Michael D Hurd; Susann Rohwedder; National Bureau of Economic Research.] -- Abstract: The simple one-good model of life-cycle consumption requires "consumption smoothing." According to previous results based on partial spending and on synthetic panels, British and U.S.

Downloadable. The simple one-good model of life-cycle consumption requires "consumption smoothing." According to previous results based on partial spending and on synthetic panels, British and U.S.

households apparently reduce consumption at retirement. The reduction cannot be explained by the simple one-good life-cycle model, so it has been referred to as the retirement-consumption puzzle.

The retirement-consumption puzzle and its mechanism are still debated rg et al.() argues that the drop is caused by the fact that the retirement of male spouses gen- erates a favorable shift in the distribution of bargaining power within households.

BibTeX @MISC{Hurd06someanswers, author = {Michael Hurd and Susann Rohwedder and Michael D. Hurd and Susann Rohwedder Rand and Michael D. Hurd and Susann Rohwedder}, title = {Some answers to the retirement-consumption puzzle, Working PaperNational Bureau of Economic Research}, year = {}}.

In this paper, I examine, using Japanese cross-section data, whether “the retirement consumption puzzle” exists, and if so, why. My results show that both the anticipated consumption during retirement of working households and the actual consumption during retirement of retired households are much lower than the actual consumption before retirement of working households.

Empirical research on retiree spending has noted a “retirement consumption puzzle,” where retiree expenditures tend to decrease both upon and during retirement. This decrease in spending is inconsistent with general economic theories on consumption, which suggest individuals seek to maintain constant consumption over their lifetimes.

In this paper we investigate the size of the consumption drop at retirement in Italy. We use micro data on food and total non-durable household spending covering the periodand evaluate the change in consumption that accompanies retirement by exploiting the exogenous variability in pension eligibility to correct for the endogenous nature of the retirement decision.

Reasons for this sign change have been explored in terms of the retirement-consumption puzzle (Smith, ) indicating that retirees do not plan accordingly for the significant decrease in income. Keywords: Retirement-Consumption Puzzle, Mandatory Retirement, Regression Discontinuity (RD) Design, Consumption Price vs.

Quantity, Education and Time Allocation 1 Introduction Many empirical studies show that consumption expenditure declines signi cantly at retirement. This phenomenon is referred to as the \retirement-consumption puzzle,".

This paper revisits the retirement-consumption puzzle with new, accurate, and compre-hensive transaction-level data on spending, income, consumer debt, and liquid savings from personal finance management software. The accurate spending data, covering more than six years, offers a unique opportunity to reevaluate the puzzle.

The Retirement Consumption Puzzle in China by Hongbin Li, Xinzheng Shi and Binzhen Wu. Published in volumeissue 5, pages of American Economic Review, MayAbstract: Using data from China's Urban Household Survey and exploiting China's.

This article uses data from the British Household Panel Survey (BHPS) to shed further light on the fall in consumption at retirement (the 'retirement-consumption puzzle'). Comparing food spending of men retiring involuntarily early (through ill health or redundancy) with spending of men who retire voluntarily, it finds a significant fall in spending only for those who retire involuntarily.

Empirical research on retiree spending has noted a “retirement consumption puzzle,” where retiree expenditures tend to decrease both upon and during retirement.

This decrease in spending is inconsistent with general economic theories on consumption, which suggest individuals seek to maintain constant consumption over their lifetimes. retirement-consumption puzzle in the UK.

But no single explanations is fully able to explain the patterns of consumption and well-being around retirement for all the groups. Fully resolving the puzzle is likely to require a better understanding of how the nature of retirement links to spending and of how different groups substitute.Much of the financial planning literature on safe withdrawal rates assumes that retirees spend a constant amount of money that is based on spending down (or decumulating) a percentage of accumulated investment assets.

For example, Bengen () introduced a methodology of constant inflation-adjusted spending that began at 4 percent of initial retirement savings.DOES THE RETIREMENT CONSUMPTION PUZZLE DIFFER ACROSS THE DISTRIBUTION? by Jonathan D. Fisher * U.S. Bureau of the Census and Joseph Marchand * University of Alberta CES March, The research program of the Center for Economic Studies (CES) produces a wide range of.