User: Guest  Login
Title:

A Life-Cycle Model with Ambiguous Survival Beliefs

Author(s):
Groneck, Max; Ludwig, Alexander; Zimper, Alexander
Abstract:
On average, young people underestimate whereas old people overestimate their chances to survive into the future. We adopt a Bayesian learning model of ambiguous survival beliefs which replicates these patterns. The model is embedded within a non-expected utility model of life-cycle consumption and saving. Our analysis shows that agents with ambiguous survival beliefs (i) save less than originally planned, (ii) exhibit undersaving at younger ages, and (iii) hold longer on to their assets than the...     »
Keywords:
Arbeitspapier/Diskussionspapier
Year:
2013
 BibTeX