Short-term planning and the life-cycle consumption puzzle

Journal of Economic Dynamics and Control

Volumn 31, Issue 4, 2007, Pages 1392-1415

  Caliendo, Frank ^a   Aadland, David ^b  

^a Department of Environmental and Radiological Health Sciences   (United States)

^b UNIVERSITY OF WYOMING   (United States)

Author keywords

Life cycle consumption; Short term planning

Indexed keywords

EID: 33847010288     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jedc.2006.05.002     Document Type: Article

References (46)

1. Akerlof G.A., and Dickens W.R. The economic consequences of cognitive dissonance. American Economic Review 72 (1982) 307-319
2. Ameriks J., Caplin A., and Leahy J. Wealth accumulation and the propensity to plan. Quarterly Journal of Economics 118 (2003) 1007-1047
3. Attanasio O. Consumption. In: Taylor J.B., and Woodford M. (Eds). Handbook of Macroeconomics vol. 1B (1999), North-Holland, Amsterdam 741-812
4. Attanasio O., and Browning M. Consumption over the life cycle and over the business cycle. American Economic Review 85 (1995) 1118-1137
5. Attanasio O., Banks J., Meghir C., and Weber G. Humps and bumps in lifetime consumption. Journal of Business and Economic Statistics 17 (1999) 22-35
6. Banks J., Blundell R., and Tanner S. Is there a retirement-savings puzzle?. American Economic Review 88 (1998) 769-788
7. Browning M., and Crossley T.F. The life-cycle model of consumption and saving. Journal of Economic Perspectives 15 (2001) 3-22
8. Browning M., and Lusardi A. Household saving: micro theories and micro facts. Journal of Economic Literature 34 (1996) 1797-1855
9. Browning M., Deaton A., and Irish M. A profitable approach to labor supply and commodity demands over the life cycle. Econometrica 53 (1985) 503-543
10. Bullard, J., Feigenbaum, J., 2004. A leisurely reading of the life-cycle consumption data. Working paper, Federal Reserve Bank of St. Louis.
11. Bütler M. Neoclassical life-cycle consumption: a textbook example. Economic Theory 17 (2001) 209-221
12. Caliendo, F., 2005. Two-stage optimal control with a fixed endpoint. Working paper, Colorado State University.
13. Campbell J.Y., and Mankiw N.G. Consumption income and interest rates: reinterpreting the time series evidence. In: Blanchard O.J., and Fischer S. (Eds). NBER Macroeconomics Annual 1989 (1989), MIT Press, Cambridge, MA 185-216
14. Carroll C.D. How does future income affect current consumption?. Quarterly Journal of Economics 109 (1994) 111-147
15. Carroll C.D. Buffer-stock saving and the life-cycle/permanent income hypothesis. Quarterly Journal of Economics 112 (1997) 1-55
16. Carroll C.D. A theory of the consumption function, with and without liquidity constraints. Journal of Economic Perspectives 15 (2001) 23-45
17. Carroll C.D., and Summers L.H. Consumption growth parallels income growth: some new evidence. In: Bernheim B.D., and Shoven J.B. (Eds). National Saving and Economic Performance (1991), Chicago University Press, Chicago, IL 305-343
18. Deaton A. Understanding Consumption (1992), Oxford University Press, Oxford
19. Feigenbaum, J., 2005. Can mortality risk explain the consumption hump? Working paper, University of Pittsburgh.
20. Fernández-Villaverde, J., Krueger, D., 2001. Consumption and saving over the life cycle: how important are consumer durables? Working paper, University of Pennsylvania.
21. Fernández-Villaverde, J., Krueger, D., 2002. Consumption over the life cycle: some facts from consumer expenditure survey data. Working paper, University of Pennsylvania.
22. Friedman M.A. A Theory of the Consumption Function (1957), Princeton University Press, Princeton, NJ
23. Friedman M.A. Windfalls, the 'horizon,' and related concepts in the permanent income hypothesis. In: Christ C. (Ed). Measurement in Economics (1963), Stanford University Press, Palo Alto 1-28
24. Gourinchas P.O., and Parker J.A. Consumption over the life cycle. Econometrica 70 (2002) 47-89
25. Hansen, G.D., İmrohoroǧlu, S., 2005. Consumption over the life cycle: the role of annuities. Working paper, UCLA.
26. Heckman J. Life cycle consumption and labor supply: an explanation of the relationship between income and consumption over the life cycle. American Economic Review 64 (1974) 188-194
27. Hubbard R.G., Skinner J., and Zeldes S.P. The importance of precautionary motives in explaining individual and aggregate saving. Carnegie-Rochester Conference Series on Public Policy 40 (1994) 59-125
28. Kamien M.I., and Schwartz N.L. Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management. second ed (1991), North-Holland, Amsterdam
29. Kemp M.C., and Long N.V. On optimal control problems with integrands discontinuous with respect to time. Economic Record 53 (1977) 405-420
30. Loewenstein G., Prelec D., and Weber R. What, me worry? A psychological perspective of economic aspects of retirement. In: Aaron H. (Ed). Behavioral Dimensions of Retirement Economics (1999), Brookings Institution Press and Russell Sage Foundation, Washington, DC 215-246
31. Lusardi A. Information, expectations, and savings for retirement. In: Aaron H. (Ed). Behavioral Dimensions of Retirement Economics (1999), Brookings Institution Press and Russell Sage Foundation, Washington, DC 81-115
32. Lusardi, A., 2003. Planning and saving for retirement. Working paper, Dartmouth College.
33. McGrattan E.R., and Prescott E.C. Is the stock market overvalued?. Federal Reserve Bank of Minneapolis Quarterly Review 24 (2000) 20-40
34. McKenzie, R.B., 1997. The nature of time in economics. Paper Presented at the Virginia Political Economy Lecture Series at George Mason University.
35. Mehra R., and Prescott E.C. The equity premium: a puzzle. Journal of Monetary Economics 15 (1985) 145-161
36. Modigliani F., and Brumberg R. Utility analysis and the consumption function: an interpretation of cross-section data. In: Kurihara K.K. (Ed). Post-Keynesian Economics (1954), Rutgers University Press, New Brunswick, NJ 388-436
37. Nagatani K. Life cycle saving: theory and fact. American Economic Review 62 (1972) 344-353
38. Reis, R. Inattentive consumers. Journal of Monetary Economics, forthcoming.
39. Siegel J.J., and Thaler R.H. The equity premium puzzle. Journal of Economic Perspectives 11 (1997) 191-200
40. Thaler R.H. Psychology and savings policies. American Economic Review 84 (1994) 186-191
41. Thaler R.H., and Benartzi S. Save more tomorrow: using behavioral economics to increase employee savings. Journal of Political Economy 112 (2004) 164-187
42. Thaler R.H., and Shefrin H.M. An economic theory of self-control. Journal of Political Economy 89 (1981) 392-406
43. Thurow L.C. The optimal lifetime distribution of consumption expenditures. American Economic Review 59 (1969) 324-330
44. Tomiyama K. Two-stage optimal control problems and optimality conditions. Journal of Economic Dynamics and Control 9 (1985) 317-337
45. Venti S.F., and Wise D.A. The cause of wealth dispersion at retirement: choice or chance?. American Economic Review 88 (1998) 185-191
46. Yakoboski, P., Dickemper, J., 1997. Increased saving but little planning: results of the 1997 Retirement Confidence Survey. EBRI Issue Brief, 191.