Fatás, Enrique, Lacomba, Juan A., Lagos, Francisco and Moro-Egido, Ana I. (2013) An experimental test on dynamic consumption and lump-sum pensions. SERIEs, 4 (4). pp. 393-413. ISSN 1869-4195
Full text not available from this repository.Abstract
This article examines the potential risks on consumption behavior of lump-sum payments. As a pension, lump-sum payments could be consumed too fast and generate an increase of poverty rates. We experimentally investigate consumption behavior in an inter-temporal decision-making setting. Subjects make consumption and saving decisions in an environment with two central features: first, there exists a decreasing probability of survival; and second, in addition to the regular income they get while active, they receive a unique lump-sum payment when retired. The results of this experiment show that rather than consuming too much during their income periods, subjects show a persistent precautionary saving behavior and over-save in the vast majority of periods. This result seems to be mainly driven by the risk averse individuals.
Item Type: | Article |
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Uncontrolled Keywords: | experimental test,consumption,savings,lump-sum payment,c91,h55,j26 |
Faculty \ School: | Faculty of Social Sciences > School of Economics |
Related URLs: | |
Depositing User: | Pure Connector |
Date Deposited: | 15 Nov 2013 14:14 |
Last Modified: | 24 Oct 2022 05:02 |
URI: | https://ueaeprints.uea.ac.uk/id/eprint/44434 |
DOI: | 10.1007/s13209-013-0098-y |
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