Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Stern, Novak, Harlow, and colleagues say compensation due Californians forcibly sterilized under eugenics laws

Burgard and Seelye find job insecurity linked to psychological distress among workers in later years

Former PSC trainee Jay Borchert parlays past incarceration and doctoral degree into pursuing better treatment of inmates

More News

Highlights

Savolainen wins Outstanding Contribution Award for study of how employment affects recidivism among past criminal offenders

Giving Blueday at ISR focuses on investing in the next generation of social scientists

Pfeffer and Schoeni cover the economic and social dimensions of wealth inequality in this special issue

PRB Policy Communication Training Program for PhD students in demography, reproductive health, population health

More Highlights

Next Brown Bag

Mon, Jan 23, 2017 at noon:
H. Luke Shaefer

Estimating Life-Cycle Parameters from Consumption Behavior at Retirement

Archived Abstract of Former PSC Researcher

Laitner, John, and Daniel Silverman. 2005. "Estimating Life-Cycle Parameters from Consumption Behavior at Retirement." NBER Working Paper 11163National Bureau of Economic Research.

Using pseudo-panel data, we estimate the structural parameters of a life--cycle consumption model with discrete labor supply choice. A focus of our analysis is the abrupt drop in consumption upon retirement for a typical household. The literature sometimes refers to the drop, which in the U.S. Consumer Expenditure Survey we estimate to be approximately 16%, as the "retirement--consumption puzzle." Although a downward step in consumption at retirement contradicts predictions from life--cycle models with additively separable consumption and leisure, or with continuous work-hour options, a consumption jump is consistent with a setup having nonseparable preferences over consumption and leisure and requiring discrete work choices. This paper specifies a life--cycle model with these latter two elements, and it uses the empirical magnitude of the drop in consumption at retirement to provide an advantageous method of identifying structural parameters--- most importantly, the intertemporal elasticity of substitution.

Country of focus: United States of America.

Browse | Search : All Pubs | Next