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Pension contributions as a commitment device: Evidence of sophistication among time-inconsistent households

Listed author(s):
  • Sourdin, Patricia
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    Sophisticated agents who are aware of their self-control problems value commitment devices that constrain future choices. Using Australian household data I test whether these households value commitment devices in the form of illiquid pension contributions. Estimating probabilistic choice models, the results confirm the conjecture that households with problems of self-control are more likely to invest in illiquid pensions while less likely to hold very liquid forms of assets.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167-4870(07)00107-9
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    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 29 (2008)
    Issue (Month): 4 (August)
    Pages: 577-596

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    Handle: RePEc:eee:joepsy:v:29:y:2008:i:4:p:577-596
    Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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