Quasi-Hyperbolic Discounting and Delayed Retirement

Theoretical Economics Letters, 5(2), 325-331 (2015)

7 Pages Posted: 24 Nov 2014 Last revised: 12 May 2015

Abstract

We study the active retirement choice in a simple three-period life-cycle setting and demonstrate that time-inconsistent delayed retirement becomes a theoretical possibility. This helps to align theory with the intuition that delaying the date of retirement can be a reasonable response to spending too much and saving too little for retirement.

Keywords: Quasi-Hyperbolic Discounting, Retirement, Life-Cycle Consumption and Saving

JEL Classification: D03, D91

Suggested Citation

Feigenbaum, James A. and Findley, T. Scott, Quasi-Hyperbolic Discounting and Delayed Retirement. Theoretical Economics Letters, 5(2), 325-331 (2015), Available at SSRN: https://ssrn.com/abstract=2529526 or http://dx.doi.org/10.2139/ssrn.2529526

James A. Feigenbaum

Utah State University ( email )

Logan, UT 84322
United States

T. Scott Findley (Contact Author)

Utah State University ( email )

Department of Economics and Finance
3565 Old Main Hill
Logan, UT 84322-3565
United States
+001-435-797-2371 (Phone)

HOME PAGE: http://tscottfindley.com

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