Experimental tests on consumption, savings and pensions
As part of the current debate on the reform of pension systems, this article examines the potential effects on consumption behaviour of implementing a lump-sum payment in a public pension system. This work explores an experimental investigation into retirement consumption behaviour with two central features: first, there exists a decreasing probability of surviving; second, there are two sequences of income, one when individual works and another when she is retired. The results show how subjects seem to plan their consumption and saving choices conditionated by both the long horizon with no incomes and the lump-sum payment. This yields, in the majority of periods, a surprising over-saving behaviour.
|Date of creation:||23 Dec 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Campus Universitario de Cartuja|
Web page: http://www.ugr.es/local/teoriahe
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- T. Parker Ballinger & Michael G. Palumbo & Nathaniel T. Wilcox, 2003. "Precautionary saving and social learning across generations: an experiment," Economic Journal, Royal Economic Society, vol. 113(490), pages 920-947, October.
- CREMER, Helmuth & PESTIEAU, Pierre, .
"Reforming our pension system: is it a demographic, financial or political problem?,"
CORE Discussion Papers RP
1468, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Cremer, Helmuth & Pestieau, Pierre, 2000. "Reforming our pension system: Is it a demographic, financial or political problem?," European Economic Review, Elsevier, vol. 44(4-6), pages 974-983, May.
- Samwick, Andrew A., 1998.
"Discount rate heterogeneity and social security reform,"
Journal of Development Economics,
Elsevier, vol. 57(1), pages 117-146, October.
- Andrew A. Samwick, 1997. "Discount Rate Heterogeneity and Social Security Reform," NBER Working Papers 6219, National Bureau of Economic Research, Inc.
- Conde-Ruiz, J.I. & Galasso, V., 2000.
Economics Working Papers
eco2000/24, European University Institute.
- Fehr, Hans & Sterkeby, Wenche I. & Thøgersen, Øystein, 2000.
"Social security reforms and early retirement,"
W.E.P. - Würzburg Economic Papers
24, University of Würzburg, Chair for Monetary Policy and International Economics.
- CREMER, Helmuth & LOZACHMEUR, Jean-Marie & PESTIEAU, Pierre, 2006.
"Social security and retirement decision: a positive and normative approach,"
CORE Discussion Papers
2006019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2008. "Social Security And Retirement Decision: A Positive And Normative Approach ," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 213-233, 04.
- Cremer, Helmuth & Lozachmeur, Jean-Marie & Pestieau, Pierre, 2006. "Social Security and Retirement Decision: A Positive and Normative Approach," CEPR Discussion Papers 5542, C.E.P.R. Discussion Papers.
- Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2003.
"Voting on Pensions with Endogenous Retirement Age,"
CEPR Discussion Papers
3778, C.E.P.R. Discussion Papers.
- CASAMATTA, Georges & CREMER, Helmuth & PESTIEAU, Pierre, . "Voting on pensions with endogenous retirement age," CORE Discussion Papers RP 1754, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Georges Casamatta & Helmuth Cremer & Pierre Pestieau, 2005. "Voting on Pensions with Endogenous Retirement Age," Post-Print halshs-00754105, HAL.
- Juan Lacomba & Francisco Lagos, 2006.
"Population aging and legal retirement age,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 19(3), pages 507-519, July.
- Vincent P. Crawford & David M. Lilien, 1981. "Social Security and the Retirement Decision," The Quarterly Journal of Economics, Oxford University Press, vol. 96(3), pages 505-529.
- Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
- Hey, John D & Dardanoni, Valentino, 1987. "Optimal Consumption under Uncertainty: An Experimental Investigation," Economic Journal, Royal Economic Society, vol. 98(390), pages 105-16, Supplemen.
- Juan Lacomba & Francisco Lagos, 2007.
"Political election on legal retirement age,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 29(1), pages 1-17, July.
- Friedrich Breyer & Mathias Kifmann, 2001.
"Incentives to Retire Later: A Solution to the Social Security Crisis?,"
Discussion Papers of DIW Berlin
266, DIW Berlin, German Institute for Economic Research.
- Breyer, Friedrich & Kifmann, Mathias, 2002. "Incentives to retire later a solution to the social security crisis?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 1(02), pages 111-130, July.
- Laibson, David I., 1997.
"Golden Eggs and Hyperbolic Discounting,"
4481499, Harvard University Department of Economics.
- Enrica Carbone & John D. Hey, 2004. "The effect of unemployment on consumption: an experimental analysis," Economic Journal, Royal Economic Society, vol. 114(497), pages 660-683, 07.
- Alexander L. Brown & Colin F. Camerer & Zhikang Eric Chua, 2006.
"Learning and Visceral Temptation in Dynamic Savings Experiments,"
321307000000000048, UCLA Department of Economics.
- Alexander L. Brown & Zhikang Eric Chua & Colin F. Camerer, 2009. "Learning and Visceral Temptation in Dynamic Saving Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 124(1), pages 197-231.
- Cubitt, Robin P & Sugden, Robert, 2001. "Dynamic Decision-Making under Uncertainty: An Experimental Investigation of Choices between Accumulator Gambles," Journal of Risk and Uncertainty, Springer, vol. 22(2), pages 103-28, March.
- Hamermesh, Daniel S & Menchik, Paul L, 1987.
"Planned and Unplanned Bequests,"
Western Economic Association International, vol. 25(1), pages 55-66, January.
- Sheshinski, Eytan, 1978.
"A model of social security and retirement decisions,"
Journal of Public Economics,
Elsevier, vol. 10(3), pages 337-360, December.
- Eytan Sheshinski, 1977. "A Model of Social Security and Retirement Decisions," NBER Working Papers 0187, National Bureau of Economic Research, Inc.
- Enrique Fatas & Juan A. Lacomba & Francisco Lagos, 2007. "An Experimental Test On Retirement Decisions," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 602-614, 07.
- Maribeth Coller & Melonie Williams, 1999. "Eliciting Individual Discount Rates," Experimental Economics, Springer, vol. 2(2), pages 107-127, December.
When requesting a correction, please mention this item's handle: RePEc:gra:wpaper:08/14. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angel Solano Garcia.)
If references are entirely missing, you can add them using this form.