Revealed preference and consumption behaviour at retirement

Arbeitspapier

This paper sets out revealed preference tests for different models of consumption behaviour over retirement that we applied to a Spanish consumption panel dataset. We reject the perfect foresight model both with separable preferences and allowing for preference change. The first order conditions for the life-cycle model allowing for uncertainty do not provide very strong restrictions on possible choices. In fact they are no stronger than those implied by the most basic revealed preference requirement: GARP. We then go on to investigate the patterns of deviations from a perfectly smoothed marginal utility of wealth and ask whether they fit the predictions of the life-cycle model. We find a tendency of these to increase over time, suggesting consumption falls more than we'd expect. After considering various possible explanations, we settle on non-rational behaviour as the most plausible.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFS Working Papers ; No. W14/29

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Offenbarte Präferenzen ; Konsumentenverhalten ; Altersgrenze ; Lebenszyklushypothese ; Panel ; Spanien

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Levell, Peter
• Ereignis: Veröffentlichung
• (wer): Institute for Fiscal Studies (IFS)
• (wo): London
• (wann): 2014

Weitere Informationen

• DOI: doi:10.1920/wp.ifs.2014.1429
• Handle: http://hdl.handle.net/10419/119555
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ