Arbeitspapier
Time Inconsistency and Retirement Choice
Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of why people borrow so much and why they wait so long to save for retirement. We reach a different set of conclusions. We show that if financial planning is enriched to include the choice of when to retire, then naïve hyperbolic discounters may borrow far less and start saving for retirement significantly earlier than exponential discounters.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 5208
- Classification
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Wirtschaft
Optimization Techniques; Programming Models; Dynamic Analysis
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
- Subject
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hyperbolic discounting
naiveté
retirement choice
time inconsistency
life-cycle consumption and saving
- Event
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Geistige Schöpfung
- (who)
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Findley, T. Scott
Caliendo, Frank N.
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Findley, T. Scott
- Caliendo, Frank N.
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2015