Asset Holdings and the Life Cycle
Empirical studies of the life cycle savings model have tended to rej ect the hypothesis of a "hump-shaped" pattern for the wealth-age profile. In this paper we show, using new data on net worth for 12,734 families, that there is evidence that wealth declines after retirement provided that we control for differences in permanent income and take account of sample selection bias. The estimated rates of decumulation are consistent with a life cycle model in which there is uncertainty about the date of death.
|Date of creation:||Jan 1981|
|Date of revision:|
|Publication status:||published as King, M. A. and Dicks-Mireaux, L-D. L. "Asset Holdings and the Life Cycle." Economic Journal, Vol. 92, No. 366 (June 1982), pp. 247-267.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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- Atkinson, A B, 1971. "The Distribution of Wealth and the Individual Life-cycle," Oxford Economic Papers, Oxford University Press, vol. 23(2), pages 239-54, July.
- Heckman, James J, 1979.
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- Benjamin Eden & Ariel Pakes, 1981.
"On Measuring the Variance-Age Profile of Lifetime Earnings,"
UCLA Economics Working Papers
196, UCLA Department of Economics.
- Benjamin Eden & Ariél Pakes, 1981. "On Measuring the Variance-Age Profile of Lifetime Earnings," Review of Economic Studies, Oxford University Press, vol. 48(3), pages 385-394.
- Angelo Melino, 1982. "Testing for Sample Selection Bias," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 151-153.
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