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Optimal time allocation in active retirement

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  • Sanchez-Romero, Miguel
  • Fürnkranz-Prskawetz, Alexia

Abstract

We set up a lifecycle model of a retired scholar who chooses optimally the time devoted to different activities including physical activity, continued work and social engagement. While time spent in physical activity increases life expectancy, continued scientific publications increases the knowledge stock. We show the optimal trade off between these activities in retirement and its sensitivity with respect to alternative settings of the preference parameters.

Suggested Citation

  • Sanchez-Romero, Miguel & Fürnkranz-Prskawetz, Alexia, 2019. "Optimal time allocation in active retirement," ECON WPS - Working Papers in Economic Theory and Policy 02/2019, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    • Handle: RePEc:zbw:tuweco:022019
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    File URL: https://www.econstor.eu/bitstream/10419/195068/1/1663184003.pdf
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    Other versions of this item:

    • Miguel Sánchez-Romero & Alexia Prskawetz, 2020. "Optimal time allocation in active retirement," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(2), pages 401-424, June.

    References listed on IDEAS

    as
    1. Strulik, Holger, 2019. "An economic theory of depression and its impact on health behavior and longevity," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 269-287.
    2. Dieter Grass & Jonathan P. Caulkins & Gustav Feichtinger & Gernot Tragler & Doris A. Behrens, 2008. "Optimal Control of Nonlinear Processes," Springer Books, Springer, number 978-3-540-77647-5, September.
    3. Carl-Johan Dalgaard & Holger Strulik, 2014. "Optimal Aging And Death: Understanding The Preston Curve," Journal of the European Economic Association, European Economic Association, vol. 12(3), pages 672-701, June.
    4. Maria Winkler-Dworak & Heiner Kaden, 2013. "The longevity of academicians: evidence from the Saxonian Academy of Sciences and Humanities in Leipzig," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 11(1), pages 185-204.
    5. Maria Winkler-Dworak, 2008. "The Low Mortality of a Learned Society," European Journal of Population, Springer;European Association for Population Studies, vol. 24(4), pages 405-424, December.
    6. Robert E. Hall & Charles I. Jones, 2007. "The Value of Life and the Rise in Health Spending," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 39-72.
    7. Schünemann, Johannes & Strulik, Holger & Trimborn, Timo, 2017. "Going from bad to worse: Adaptation to poor health health spending, longevity, and the value of life," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 130-146.
    8. Carl-Johan Dalgaard & Holger Strulik, 2017. "The Genesis of the Golden Age: Accounting for the Rise in Health and Leisure," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 132-151, March.
    9. Kevin M. Murphy & Robert H. Topel, 2006. "The Value of Health and Longevity," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 871-904, October.
    10. Strulik, Holger, 2018. "The return to education in terms of wealth and health," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 1-14.
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    Cited by:

    1. Christian Stummer & Ayşegül Engin, 2021. "A tribute to Rudolf Vetschera," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(1), pages 1-6, March.

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    More about this item

    Keywords

    Time allocation; Active retirement; Longevity; Scientific production;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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