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: 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
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