Life cycle saving: Insights from the perspective of bounded rationality
Journal
European Economic Review
ISSN
00142921
Type
journal article
Date Issued
2012
Author(s)
Abstract (De)
This paper provides a new life cycle model that takes into account key elements of bounded rationality. The paper shows that the model can account for patterns in the data that are hard to explain by the standard life cycle model. Among other patterns, the model predicts that, typically, the young either hold no equity or their equity portfolio share is rather low and then increases over working life. The analytical solution of the model demonstrates its high degree of tractability.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
None
Refereed
Yes
Volume
56
Number
3
Start page
605
End page
623
Subject(s)
Contact Email Address
johannes.binswanger@unisg.ch
Eprints ID
255454