TITLE:
Quasi-Hyperbolic Discounting and Delayed Retirement
AUTHORS:
James A. Feigenbaum, T. Scott Findley
KEYWORDS:
Quasi-Hyperbolic Discounting, Retirement, Life-Cycle Consumption and Saving
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.2,
April
28,
2015
ABSTRACT: We study the active retirement choice in a simple three-period life-cycle
setting and demonstrate that time-inconsistent delayed retirement becomes a
theoretical possibility. This helps to align theory with the intuition that
delaying the date of retirement can be a reasonable response to spending too
much and saving too little for retirement.