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Monday, July 20, 2020 | History

3 edition of Is there a retirement-consumption puzzle? evidence using subjective retirement expectations found in the catalog.

Is there a retirement-consumption puzzle? evidence using subjective retirement expectations

Steven Haider

Is there a retirement-consumption puzzle? evidence using subjective retirement expectations

by Steven Haider

  • 65 Want to read
  • 27 Currently reading

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

    Subjects:
  • Consumption (Economics) -- United States,
  • Retirement income -- United States

  • Edition Notes

    StatementSteven J. Haider, Melvin Stephens Jr.
    SeriesNBER working paper series -- no. 10257., Working paper series (National Bureau of Economic Research) -- working paper no. 10257.
    ContributionsStephens, Melvin., National Bureau of Economic Research.
    The Physical Object
    Pagination52 p. :
    Number of Pages52
    ID Numbers
    Open LibraryOL17619661M
    OCLC/WorldCa54409137

    When using retirement expectations as an instrument for retirement, they find that consumption falls by 7 to 11 percent for workers who retire as expected. Hurd and Rohwedder () investigated the puzzle by comparing anticipated and actual declines in spending at retirement. They use a non separable utility function in leisure and consumption. by the life cycle framework. The analysis shows that when there is uncertainty about the timing of retirement and retirement is a discrete event, then a drop in consumption is implied by the life cycle framework if retirement is caused by an unexpected shock. If retirement occurs at the planned date, there is no drop in consumption at retirement.

    to as the retirement-consumption puzzle.1 But other studies argue that this drop in consumption at retirement is not actually and Hurst(,) andHurst() strongly question the claim that there is a decline in actual consumption utility at retirement. There are, however, other interpretations of the retirement-consumption puzzle. The most obvious interpretation has to do with work-related expenses, but it appears that such expenses are not large enough to explain observed drops in consumption at retirement (Banks, Blundell and Tanner).

    This phenomenon is called the retirement consumption puzzle. We find no evidence of the retirement consumption puzzle using panel data from to Consumption is defined as nondurable expenditure, a more comprehensive measure than only food used in many of the previous studies. We find that food expenditure declines at retirement, which.   The simple one-good model of life-cycle consumption requires that consumption be continuous over retirement; yet prior research based on partial measures of consumption or on synthetic panels indicates that spending drops at retirement, a result that has been called the retirement-consumption puzzle. Using panel data on total spending.


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Is there a retirement-consumption puzzle? evidence using subjective retirement expectations by Steven Haider Download PDF EPUB FB2

Is There a Retirement-Consumption Puzzle. Evidence Using Subjective Retirement Expectations Abstract Previous research finds a systematic decrease in consumption at retirement, a finding that is inconsistent with the Life-Cycle/Permanent Income Hypothesis if retirement. Downloadable (with restrictions).

Previous research finds a systematic decrease in consumption at retirement, a finding that is inconsistent with the life cycle/permanent income hypothesis if retirement is an expected event. In this paper, we use workers' subjective beliefs about their retirement dates as an instrument for retirement.

After demonstrating that subjective retirement expectations. Is There a Retirement-Consumption Puzzle. Evidence Using Subjective Retirement Expectations After demonstrating that subjective retirement expectations are strong predictors of subsequent retirement decisions, we still find a consumption decline at retirement for workers who retire when expected.

Is There a Retirement-Consumption Puzzle Cited by: Get this from a library. Is there a retirement-consumption puzzle. evidence using subjective retirement expectations. [Steven Haider; Melvin Stephens; National Bureau of Economic Research.].

Published: Steven J Haider & Melvin Stephens, "Is There a Retirement-Consumption Puzzle. Evidence Using Subjective Retirement Expectations," The Review of Economics and Statistics, MIT Press, vol. 89(2), pagescitation courtesy of. Users who downloaded this paper also downloaded* these:Cited by: Hurd and Rohwedder: w Some Answers to the Retirement-Consumption Puzzle: Hurd and Rohwedder: w The Retirement-Consumption Puzzle: Anticipated and Actual Declines in Spending at Retirement: Haider and Stephens: w Is There a Retirement-Consumption Puzzle?Evidence Using Subjective Retirement Expectations: Aguiar and Hurst: w Deconstructing Lifecycle.

Steven J. Haider & Melvin Stephens, "Is There a Retirement-Consumption Puzzle. Evidence Using Subjective Retirement Expectations," The Review of Economics and Statistics, MIT Press, vol.

89(2), pagesMay. called the retirement-consumption puzzle and the authors argue that overconsumption before retirement causes a sharp adjustment at retirement, a mechanism that is theoretically rational-ized inPagel() andHuang et al.().

Moreover,Ameriks et al.() andHurd and Rohwedder() provide evidence that the drop in consumption is expected. DOI: /aer Corpus ID: The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach @article{BattistinTheRC, title={The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach}, author={Erich Battistin and Agar Brugiavini and Enrico Rettore and Guglielmo Weber}, journal={The American Economic.

Evidence Using Subjective Retirement Expectations," The Review of Economics and Statistics, MIT Press, vol. 89(2), pagesMay. Steven Haider & Melvin Stephens Jr., " Is There a Retirement-Consumption Puzzle. Get this from a library. Is there a retirement-consumption puzzle.

evidence using subjective retirement expectations. [Steven Haider; Melvin Stephens; National Bureau of Economic Research.] -- "Previous research finds a systematic decrease in consumption at retirement, a finding that is inconsistent with the Life-Cycle/Permanent Income Hypothesis if retirement is an expected event.

w Is There a Retirement-Consumption Puzzle. Evidence Using Subjective Retirement Expectations: Hurd and Rohwedder: w Some Answers to the Retirement-Consumption Puzzle: Aguiar and Hurst: w Consumption vs.

Expenditure: Aguiar and. doi: /jx corpus id: the retirement-consumption puzzle and involuntary early retirement: evidence from the british household panel survey* @inproceedings{smiththerp, title={the retirement-consumption puzzle and involuntary early retirement: evidence from the british household panel survey*}, author={sarah harrison smith}.

evidence that consumption falls at retirement even when households retire when expected. While these results reject the LCPIH, the retirement consumption decrease is nearly 50 percent smaller in magnitude when using subjective retirement expectations as an instrument relative to using age as an instrument.

Therefore, while our results provide. 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. We find no evidence of the retirement consumption puzzle using panel data from to Consumption is defined as nondurable expenditure, a more.

Using panel data, we find that prior to retirement workers anticipated on average a decline of % in spending and after retirement they recollected a decline of %: widespread surprise is not the explanation for the retirement-consumption puzzle.

Workers with substantial wealth both anticipated and recollected a decline. Using panel data, we find that prior to retirement workers anticipated on average a decline of % in spending and after retirement they recollected a decline of %: widespread surprise is.

We find that subjective retirement expectations provide strong predictive power for subsequent retirements above and beyond the impact of age on retirement probabilities. We still find, however, that consumption falls for workers who retire when expected although the estimated impact is 50 percent smaller when using retirement expectations as.

Steven J. Haider's 63 research works with 2, citations and 8, reads, including: Reconsidering the role of choice and chance for predicting retirement wealth. Haider, S. and M. Stephens, () ‘Is There a Retirement-Consumption Puzzle?

Evidence Using Subjective Retirement Expectations’, Review of Economics and .“Is There a Retirement-Consumption Puzzle? Evidence Using Subjective Retirement Expectations.” Review of Economics and Statistics 89(2) Rohwedder, Susann, Steven J. Haider, and Michael Hurd. Book Chapters Haider, Steven J.

and David S. Loughran. “Household Savings and Retirement: Expectations and Realizations.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,".