The Financial Crisis and Consumers' Income and Pension Expectations
24 Pages Posted: 30 Sep 2014
Date Written: September 30, 2014
The expectations of economic agents play a crucial role in almost any inter-temporal economic model. A period of economic crisis may make consumer expectations more pessimistic and affect their saving or retirement plans and decisions. Using 2009-2012 panel data for a representative sample of the Dutch population, we analyze consumers’ perception of the crisis and its expected impact on the household. Second, we analyze the deviations between short run income expectations and realizations, and how they are shaped by how people perceive the crisis. Finally, we study how crisis perceptions affect retirement age and income expectations.
Keywords: Subjective probabilities, retirement, replacement rates
Suggested Citation: Suggested Citation