Using pseudo-panel data, we estimate the structural<br>parameters of a life--cycle consumption model with discrete labor<br>supply choice. A focus of our analysis is the abrupt drop in<br>consumption upon retirement for a typical household. The<br>literature sometimes refers...

Ausführliche Beschreibung

Bibliographische Detailangaben

Hauptverfasser:	Laitner, John (VerfasserIn), Silverman, Dan (VerfasserIn)
Format:	Buch
Sprache:	English
Veröffentlicht:	Cambridge, Mass. National Bureau of Economic Research 2005
Schriftenreihe:	National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 11163
Schlagworte:	Verbraucherausgaben / Altersgrenze / Konsumtheorie
Zusammenfassung:	Using pseudo-panel data, we estimate the structural<br>parameters of a life--cycle consumption model with discrete labor<br>supply choice. A focus of our analysis is the abrupt drop in<br>consumption upon retirement for a typical household. The<br>literature sometimes refers to the drop, which in the U.S.<br>Consumer Expenditure Survey we estimate to be approximately 16%,<br>as the "retirement--consumption puzzle." Although a downward<br>step in consumption at retirement contradicts predictions from<br>life--cycle models with additively separable consumption and<br>leisure, or with continuous work-hour options, a consumption jump<br>is consistent with a setup having nonseparable preferences over<br>consumption and leisure and requiring discrete work choices. This<br>paper specifies a life--cycle model with these latter two elements, and it uses the empirical magnitude of the drop in consumption at<br>retirement to provide an advantageous method of identifying<br>structural parameters --- most importantly, the intertemporal<br>elasticity of substitution.<br>
Beschreibung:	50 S.