Uncertain Lifetime, Consumption, and Dissaving in Retirement

摘要: This paper asks whether the continued accumulation, or mild dissaving, observed among retired can be explained by uncertain lifetime. In absence of annuities, after an initial period influenced borrowing constraints, under constant relative risk aversion, lifetime depresses consumption a proportion increasing with age if elasticity intertemporal substitution in is "small." Illustrative computations, based on actual income and survival data, show that plausible elasticities are sufficiently small to give this effect. The reduction large enough explain much lack decumulation elderly.