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Life cycle saving: Insights from the perspective of bounded rationality

Binswanger,J.
Abstract
This paper provides a new life cycle model that takes into account key elements of bounded rationality. The paper shows that the model can account for patterns in the data that are hard to explain by the standard life cycle model. Among other patterns, the model predicts that, typically, the young either hold no equity or their equity portfolio share is rather low and then increases over working life. The analytical solution of the model demonstrates its high degree of tractability.
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Date
2012
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Tilburg University Research Output Collection
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Binswanger, J 2012, 'Life cycle saving : Insights from the perspective of bounded rationality', European Economic Review, vol. 56, no. 3, pp. 605-623. https://doi.org/10.1016/j.euroecorev.2012.01.003
URI
https://hdl.handle.net/20.500.14602/57337
License
info:eu-repo/semantics/closedAccess
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