Time preferences over the life cycle and household saving puzzles
نویسندگان
چکیده
Most economic models assume that time preferences are stable over time, but the evidence on their long-term stability is lacking. We study whether and how change life cycle, using representative panel data. provide new discount rates decrease with age decline remarkably linear cycle. Decreasing help a canonical life-cycle model explain saving puzzles of households undersaving when young oversaving after retirement. Relative to constant discounting, model’s fit consumption asset data profiles improves by 40% 30%, respectively.
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2021
ISSN: ['0304-3932', '1873-1295']
DOI: https://doi.org/10.1016/j.jmoneco.2021.10.004