Dynamic Consistency and Regret

Caliendo, Frank; Findley, T. Scott

doi:10.1016/j.jebo.2019.09.014

Cited by 4 publications

(2 citation statements)

References 29 publications

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“…A. Adnan, R. I. Alaudin, A. M. Yaakob, N. Ismail finding suggests that consumption in retirement is lower compared to before the retirement, thus an extensive study by Alaudin [11] which considers both optimistic and pessimistic scenarios give an inclusive measure of two different scenarios. While Caliendo and Findley [12] demonstrated the optimal level of retirement saving and other dynamic scenarios, they expressed regret for having saved too little for retirement.…”

Section: Literature Reviewmentioning

confidence: 99%

Retirement Wealth Adequacy Estimation Based on Income Group Classification: A Case Study in Malaysia

Adnan,

Alaudin,

Yaakob

et al. 2023

jour

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The inadequacy of retirement wealth can significantly impact a country’s social support system. The increase of the size of the elderly population in line with the constant growth of life expectancy among Malaysians has triggered a question, are there enough resources to cover needs in retirement years? The main objective of this study is to estimate the retirement income adequacy of future retirees under a defined contribution (DC) plan, which is the Employee Provident Fund (EPF). The projection of retirement income adequacy uses cross-sectional data from the Malaysian Household Income Survey (HIS) 2014, based on 14,169 sample households. The households are categorized according to three different income groups, including Top 20% (T20), Middle 40% (M40) and Bottom 40% (B 40). In addition, this research also investigates the demographic and socio-economic determinants of retirement wealth adequacy using OLS and logistic regression. The result shows that 26% of households in the sample have inadequate retirement income, especially households in the B 40 group.

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Section: Literature Reviewmentioning

confidence: 99%

Retirement Wealth Adequacy Estimation Based on Income Group Classification: A Case Study in Malaysia

Adnan,

Alaudin,

Yaakob

et al. 2023

jour

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“…Each subdomain is modeled as separate planning horizons for the control variables, where transversality conditions on the co-state variable and Hamiltonian functions ensure optimal savings behavior and retirement timing. Kuhn et al (2015) solve for optimal retirement timing and health investments, but abstract from explicit solutions for intensive margin labor supply, Caliendo and Findley (2020) solve for extensive and intensive margin labor supply as separate cases while keeping the other margin fixed. In this paper, both are solved for simultaneously.…”

Section: Introductionmentioning

confidence: 99%

Age-Targeted Income Taxation, Labor Supply, and Retirement

Gustafsson

2021

SSRN Journal

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This paper studies the life-cycle effects of favorable marginal tax treatment of older workers on their optimal life cycle labor supply, retirement timing, and savings. I develop a structural model in continuous time where the life-cycle of a representative agent is divided into three distinct phases: pre-treatment, post-treatment, and retirement. Solutions for consumption/savings, labor supply/leisure, and retirement timing are then obtained by solving the model as a salvage value problem. I then calibrate the model to Swedish earnings data and find that the increased extensive margin labor supply is partially offset by a reduction in hours worked during the pre-treatment period. The total effect is however an increase in life-cycle labor supply and consumption.

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Lifecycle consumption and welfare with nonexponential discounting in continuous time

Feigenbaum

Raei

2023

Journal of Mathematical Economics

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Dynamic Consistency and Regret

Cited by 4 publications

References 29 publications

Retirement Wealth Adequacy Estimation Based on Income Group Classification: A Case Study in Malaysia

Retirement Wealth Adequacy Estimation Based on Income Group Classification: A Case Study in Malaysia

Age-Targeted Income Taxation, Labor Supply, and Retirement

Lifecycle consumption and welfare with nonexponential discounting in continuous time

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