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3 edition of Estimating life-cycle paramaters from consumption behavior at retirement found in the catalog.

Estimating life-cycle paramaters from consumption behavior at retirement

John Laitner

Estimating life-cycle paramaters from consumption behavior at retirement

by John Laitner

  • 295 Want to read
  • 39 Currently reading

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

    Subjects:
  • Consumption (Economics) -- Econometric models,
  • Retirees -- United States -- Economic conditions

  • Edition Notes

    StatementJohn Laitner, Dan Silverman.
    SeriesNBER working paper series -- working paper 11163., Working paper series (National Bureau of Economic Research) -- working paper no. 11163.
    ContributionsSilverman, Dan P., 1935-, National Bureau of Economic Research.
    The Physical Object
    Pagination50 p. ;
    Number of Pages50
    ID Numbers
    Open LibraryOL17626056M
    OCLC/WorldCa58533165

    Estimation of a Life-Cycle Model with Human Capital, Labor Supply and Retirement Ap Abstract We develop and estimate a life-cycle model in which individuals make decisions about consumption, human capital investment, and labor supply. this trend is critical to understanding retirement behavior. By contrast, life-cycle human. "Estimating Life-cycle Parameters from Consumption Behavior at Retirement," with John Laitner, February, pdf; Publications “Whom Do Employers Want? The Role of Recent Employment and Unemployment Status and Age,” with Henry Farber, Chris Herbst, and Till von Wachter. Accepted, Journal of Labor Economics. pdf.

    Y t 1 = the individual’s labour income in the current time period (t). Y-1e = the average annual labour income expected over the future (N – 1) years during which the individual plans to work. A t = the value of presently held assets. It can be seen from Equation (1) that according to the life cycle hypothesis, consumption depends not only on current income but also on expected . estimate a life-cycle model in which the optimal employment, retirement and consumption Klaauw and Wolpin, ). These studies typically find that the estimated preference parameters life expectancy, life-cycle employment, retirement and consumption behavior, and the incentives.

    Estimating Life-Cycle Models without agents havea desireto smooth consumption over the life cycle, given an initial stock of wealth and an uncertain time of death (see, for example, the foundational paper Yaari ()). from subjective expectations data to estimate structural model parameters. In addition to jointly. Figure 2 includes the annual inflation-adjusted change in consumption for retirees from age 60 to age The results are bounded by these ages to ensure a large enough sample of retirees at each age (approximately 30 households by age). A second order polynomial regression was performed for the entire age range.


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Estimating life-cycle paramaters from consumption behavior at retirement by John Laitner Download PDF EPUB FB2

Consumption upon retirement for a typical household. The literature sometimes refers to the drop, which in the U.S. Consumer Expenditure Survey we estimate to be approximately 16%, as the "retirement--consumption puzzle." Although a downward step in consumption at retirement contradicts predictions from life--cycle models with additively separable consumption Cited by: 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. Estimating Life-Cycle Parameters from Consumption Behavior at Retirement Article in SSRN Electronic Journal January with 27 Reads How we measure 'reads'.

Estimating life-cycle paramaters from consumption behavior at retirement. Cambridge, Mass.: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: John Laitner; Dan P Silverman; National Bureau of Economic Research.

Get this from a library. Estimating life-cycle paramaters from consumption behavior at retirement. [John Laitner; Dan Silverman; National Bureau of Economic Research.] -- "Using pseudo-panel data, we estimate the structural parameters of a life--cycle consumption model with discrete labor supply choice.

A focus of our analysis is the abrupt drop in consumption Estimating life-cycle paramaters from consumption behavior at retirement book. A focus of our analysis is the abrupt drop in consumption upon retirement for a typical household.

The literature sometimes refers to the drop, which in the U.S. Consumer Expenditure Survey we estimate to be approximately 16%, as the "retirement-consumption puzzle."Cited by: Estimating Life-Cycle Parameters from Consumption Behavior at Retirement. A focus of our analysis is the abrupt drop in consumption upon retirement for a typical household.

The literature sometimes refers to the drop, which in the U.S. Consumer Expenditure Survey we estimate to be approximately 16%, as the "retirement--consumption puzzle."Author: John Laitner and Dan Silverman. consumption in the face of declining labor income.

To add an empirical content to this life-cycle di-mension of the analysis, the model first incorporates V Consumption and Saving Behavior: A Life-Cycle Perspective 37 69The revival of the classical view and the Ricardian equiva-lence proposition was led by Barro ().

See Barro () for a. observations about life-cycle consumption: excess smoothness and sensitivity in consumption, a hump- shaped consumption profile, and a drop in consumption at retirement. 1 This study offers a new, unified, and parsimonious explanation for these facts based on expectations-based reference-dependent.

In this view, a drop in. consumption expenditure at retirement is consistent with life cycle theory. because it does not imply a drop in consumption, and it is the latter that. is the object of attention in economic theory. Alcohol consumption.

The second health behavior we assess is alcohol consumption. The burden of alcohol consumption is well-known; it is one of the largest avoidable risk factors and contributes substantially to the global burden of disease (responsible for almost 4% of total mortality (Rehm et al., ).Cited by: 7.

BibTeX @MISC{Laitner05officioestimating, author = {John Laitner and Dan Silverman and John Laitner and John Laitner and Dan Silverman}, title = {officio Estimating Life—Cycle Parameters from Consumption Behavior at Retirement}, year = {}}. BibTeX @MISC{Laitner05tothe, author = {John Laitner and Dan Silverman and John Laitner and Dan Silverman}, title = {to the source.

Estimating Life-Cycle Parameters from Consumption Behavior at Retirement}, year = {}}. The authors find that the estimates of the Frisch elasticity most relevant for fiscal policy analysis range from to (with a central estimate of ).

Using that range, they illustrate how different Frisch elasticities affect the responsiveness of labor supply to changes in fiscal by: 6.

Estimating Life-Cycle Parameters from Consumption Behavior at Retirement NBER Working Papers, National Bureau of Economic Research, Inc View citations (59) Also in Working Papers, University of Michigan, Michigan Retirement Research Center () View citations (16) Consumption Commitments and Preferences for Risk.

Estimating Life—Cycle Parameters from Consumption Behavior at Retirement 1. Introduction The life—cycle saving model is a cornerstone of modern economic policy analysis. Re-searchers use the framework to study, among other topics, economic growth, business cycles, social insurance, and trade and tax policies (e.g., Diamond [], Auerbach andCited by: "Estimating Life—Cycle Parameters from Consumption Behavior at Retirement”," Working Papers wp, University of Michigan, Michigan Retirement Research Center.

John Laitner & Dan Silverman, " Estimating Life-Cycle Parameters from Consumption Behavior at Retirement," NBER Working PapersNational Bureau of Economic Research, Inc.

TheBen-Porath() model of life-cycle human capital production and the life-cycle labor supply model are two of the most important models in labor economics. The former is the dominant framework used to rationalize wage growth over the life-cycle; the lat-ter has been used to study hours worked over the life-cycle, including retirement.

Quite. A simple life cycle model with uncertainty about the time of retirement can account for this pattern. A richer version of the model is calibrated to data from the Health and Retirement Study Author: David Blau.

Section 2 of the paper describes the drop in consumption at retirement, and section 3 develops a simple life cycle model to explain it. Section 4 describes the quantitative model and solution approach.

Section 5 describes the data, calibrated parameters, and model fit. The issue of portfolio choice over the life cycle is encountered by every investor. Popular finance books [e.g., Malkiel ()] and financial counselors generally give the advice to shift the portfolio composition towards relatively safe assets, such as Treasury bills, and away from risky stocks as the investor grows older and reaches retirement.

But what could be the Cited by: "Estimating Life-cycle Parameters from Consumption Behavior at Retirement," with John Laitner, February, pdf; Publications "Consumption, Retirement and Social Security: Evaluating the Efficiency of Reform that Encourages Longer Careers," with John Laitner.

Forthcoming in the Journal of Public Economics, February pdf.