Interdependent Durations in Joint Retirement

Center for Retirement Research at Boston College Working Paper No. 2011-5

29 Pages Posted: 16 Feb 2011

See all articles by Bo E. Honoré

Bo E. Honoré

Princeton University - Department of Economics

Aureo de Paula

University College London - Department of Economics

Date Written: February 1, 2011

Abstract

In this paper, we use a novel duration model to study joint retirement in married couples using the Health and Retirement Study. Whereas conventionally used models cannot account for joint retirement, our model admits joint retirement with positive probability and nests the traditional proportional hazards model. In contrast to other statistical models for simultaneous durations, it is based on Nash bargaining and is interpretable as an economic behavior model. Our estimation strategy relies on indirect inference.

Suggested Citation

Honore, Bo E. and de Paula, Aureo, Interdependent Durations in Joint Retirement (February 1, 2011). Center for Retirement Research at Boston College Working Paper No. 2011-5, Available at SSRN: https://ssrn.com/abstract=1762097 or http://dx.doi.org/10.2139/ssrn.1762097

Bo E. Honore (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Aureo De Paula

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom

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